Moody’s Investors Service gave Madison its top rating recently to recognize the city’s "strong and diverse" economy.
The rating demonstrates Madison has a good credit history and is financially efficient, but city officials said the "AAA" rating comes as no surprise.
"The stronger your economy and better managed your government is, the better rating you tend to get," said George Twigg, communications director for Mayor Dave Cieslewicz. "Madison has an excellent economy — one of best in the nation."
Average unemployment rates for the city, recorded at 3.7 percent in June, are significantly lower than the national average of 4.8 percent, he added.
Twigg also said Madison prides itself on being fiscally conscientious.
"We try to be responsible in the amount of money we borrow," he noted. "We keep a pretty healthy rainy day fund of about $21 million for unexpected costs such as natural disasters."
However, the impact of the rating extends far beyond just mere bragging rights.
City Comptroller Dean Brasser said Madison will now have more money to spend on programs for the community.
"We are borrowing approximately $30 million in bond issues at about a 3.825 percent interest rate," he explained. "[The top rating] continues our ability to borrow at the lowest possible interest rate for all of our public works projects."
Because of lower interest rates, Twigg agreed, the city will have more available funding for other services to benefit Madison residents.
"Money that we don't spend on higher interest rates can go towards adding police officers," Twigg said. "Public safety is a big issue right now."
But the exact savings from the lower interest rates in dollars and cents, he added, are still unknown.
According to Bill Mellon, associate dean for research policy in the graduate school of research, the University of Wisconsin has played a large role in Madison's growing economy over the years.
"When you look at the biotech industry on a per capita basis, we rank pretty high in the world for a state with only a little over 6 million people," Mellon said. "A bulk of that comes from the university system."
UW’s graduate research department ranks in the top 10 institutions nationwide and in the top five among public institutions, he added.
"I think the statistics would bear out that we provide a fair amount of induction in terms of the economy," Mellon pointed out. "In our opinion, we are one of the engines that drive not only the city, but the state."
The positive recognition from Moody’s Investors Service, however, does not mean Madison can rest easy.
"We must never rest on our laurels," Cieslewicz said in a press release. "We must continue to be innovative, creative and aggressive in continuing to grow our economy, create jobs and compete in the global marketplace."