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December 26, 2013
CITY OF GROSSE POINTE — City Manager Peter Dame is ending the year with thoughts of financial forecasts dancing in his head.

“I am pleased by the recent presentation of the city’s auditing group, Plante Moran, at which they applauded the city’s long-range financial forecasting and steps it has taken to address legacy retiree costs in the face of property tax reductions,” Dame said.

Recent editions of his annual five-year financial outlook for the City of Grosse Pointe stressed the diverging paths of declining property tax revenues and increased costs.

“Plante Moran pointed out that it will take more than a decade to recover to the revenue levels from five years ago under Michigan’s limited options for financing local government operations,” Dame said. “Recognizing that those levels are not coming back anytime soon, the city’s elected officials had the foresight and will to reduce expenditures to maintain a solid financial footing.”

Credit analysts from Standard & Poor’s cited the quality of city management among reasons the community’s bonds deserve a AA+ rating.

“Strengths include multiyear financial projections and quarterly budget and investment monitoring, with additional flexibility to amend the budget over the course of the fiscal year,” according to a rating report in May 2012.

Although the report is 1 1/2 years old, its findings haven’t changed, thus affirming the analysts’ expectation at the time to maintain the bond rating for at least two years, if not longer.

“I am pleased we have the confidence of the rating agency, which upheld the very high rating the city established long ago in better economic times,” Dame said.

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