Despite tough economic times, city retains positive Moody rating

Despite a challenging economy, Lakewood will retain its Aa2 rating, Moody's Investor Service announced recently. The distinction is the third highest rating given by Moody's. Lakewood's rating places it among the top quarter of Ohio cities.

According to city officials, a strong rating saves the city money and is a representation of the city's financial strength. The city plans to issue debt to cover the cost of capital improvement projects. As Moody's notes, the rating reflects Lakewood's "improving financial position following significant expenditure reductions." While faced with declining revenues and projected $4 million budget gap at the end of 2007, the city reduced expenses.

The cost cutting measures employed by city council and Mayor Ed FitzGerald included the reduction of nearly 190 full and part-timepositions throughout all city divisions, scaling back benefits and salary increases for non-union employees, and similar agreements with three of the city's unions to date.