The wrangling on Wall Street over the United States’ mounting debt situation may have impacts reaching all the way to Prairie Village city hall.
Prairie Village finance director Lisa Santa Maria told the City Council earlier this week that Moody’s was considering downgrading the country’s AAA bond rating – and that such a downgrade may affect both Prairie Village’s rating and the payments the city makes on debt. Moody’s is one of Prairie Village’s credit rating agencies and currently rates the city AAA.
“It’s very hard to know exactly how this situation will impact things at our level,” she said. “But there is a chance we could see something happen.”
The credit rating situation is of particular interest as the city pursues the refinancing of its debt. The City Council approved a measure in its 2012 budget that reworks the city’s 2009 bond issue so as to provide cash flow next year that can be used to pay for road improvements.