A strong financial position, including a low debt profile and a $3 million reserve fund were among the reasons cited by Moody’s Investment Services, a New York-based provider of credit ratings and risk analysis, for giving Vicksburg’s $9.8 million bond issue an A2 rating.

“It’s a strong rating,” city accounting director Doug Whittington said. “The main benefit for the city is the better interest rate than if we had a lower rating.

“For the taxpayer, it means we’re going to pay less interest over the term of the bond, therefore, the improvements will cost less and there’s that much less chance or risk of raising taxes. We won’t be paying as much (on the loan).”

Like any responsible individual, the only way to receive a high credit rating is to pay the bills and perform basic fiscal duties in a timely manner. Anything less is unacceptable, especially when it’s taxpayers’ money.

Moody’s pulled the city’s A-1 bond rating in February 2012. Getting that rating restored was a goal of Mayor George Flaggs Jr. when he was campaigning for the mayor’s office in 2013.

The Board of Mayor and Aldermen worked hard to restore the city’s bond rating by finishing all audits to bring the city in compliance with all federal and state laws, as it relates to audits of this city and by prohibiting the board from reducing the city’s fund balance below 25 percent of the budgeted expenses set in the city’s budget.

The measures show potential developers and businesses that the city is serious about being fiscally responsible.

The revenue a city collects is rarely enough to get the job done today, and officials must turn to loans or bond issues to make ends meet.

Vicksburg for is just like an individual with bad credit. Banks and bond agencies have been afraid to lend the city money, fearing the risk is too high.

According to the report accompanying the A2 rating, Moody’s cited the city’s “demonstrated ability to building reserves, growing general fund balance as a percent of revenues from 29 percent ($8.9 million) in fiscal 2008 to 49.7 percent ($14.6 million) in fiscal 2013.”

The Moody’s report, however, indicated the city has several challenges, such as a high unemployment rate and its reliance on sales tax and gaming revenue to form the bulk of its revenues.

“I think if we can continue to govern ourselves and keep the trend going, we can improve our bond rating,” Flaggs said. “I won’t rest until we get a better rating for the remaining $9 million.”

With lower interest on bonds the city is moving in the right direction and that’s a good thing.