By: Diane Benjamin
The Town of Normal loves to brag about their AAA credit rating, even though only Fitch has them AAA. Fitch is the smallest rating agency, so that’s like a kindergartener saying you are the best person ever.
Recently Normal decided to finance a new fire vehicle instead of paying cash. The interest rates they could get were included in the documentation:
https://normal.org/ArchiveCenter/ViewFile/Item/4039
PDF page 78:
Bloomington has a Aa2 credit rating. Last February they refinanced some debt. Bloomington City Manager Tim Gleason sent me the below:
Bloomington got way less than 1%!
Bond rates went up in March, but have since come way back down. Besides the fact that Normal is financing an asset that is going to depreciate and Bloomington is just refinancing debt, why is Bloomington paying close to a point less?
Bloomington will payoff this debt by June 2027. Normal will still be paying their 10 debt.
Below is Moody’s report on Normal – Aa1, not AAA. Note ISU isn’t good. State government at it’s best!
Moody’s has Bloomington at Aa2
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The difference in interest is way more than just saying 1 point. Normal is paying 254% more in interest than Bloomington! These loans were done within weeks of each other so Koos can’t say it was a different economy. Lenders see through the smokescreen and realize Normal’s financial strategy is not as sound as they claim.
ANYTIME you call yourself ‘uptown” the sharks are going to circle! These are better rates then you can get on a LONG TERM CD!
Wonder IF there’s a grant for stupidity????? Check into it Pam..