BURLINGTON, Vt. -
Burlington's credit rating took a dive Wednesday and analysts say the city's fiscal future is bleak.
The Moody's credit rating service lowered the Queen City's general obligation debt rating two levels.
City staffers say higher interest rates associated with the move will increase costs for current and future loans.
Mayor Miro Weinberger says he and financial advisors anticipated the possibility of higher borrowing costs in his recent budget proposal. He expects the city will pay more than $50,000 in additional payments this year due to debt interest rate increases.
"Moody's downgrade today recognizes what Burlingtonians have long known, the financial management of the city by the past administration was problematic in numerous ways, particularly with respect to the $17 million cash pool loan to Burlington Telecom," said Weinberger, D-Burlington.
The Moody's report is based almost entirely on figures from fiscal year 2011.
Weinberger says positive changes have already taken effect since then and he says his current budget proposal addresses most of the concerns in the report.
The full City Council is expected to vet the mayor's budget plan at Monday's City Council meeting.
