By Duaine Duffyy, Councilman-at-Large, Division B, LaPlace

DEAR EDITOR: St. John the Baptist Parish’s government achieved a milestone this week when the financial ratings agencies of Moodys and Standard and Poors upgraded our bond rating to an “A.” The parish made this request to the agencies while preparing to issue the $18 million of general obligation bonds approved by the voters earlier this year.

In upgrading our rating from a “B” to an “A,” St. John Parish has put itself on an equal footing with some of the larger and financially stronger parishes, while moving ahead of municipalities, such as the city of New Orleans. What this upgrade means is saying is that St. John Parish has a stronger growing tax base and sound financial management policies in place to administer our tax dollars.

I was fortunate enough to be a part of the delegation who made the parish’s appeal for a higher rating. It was an educational experience, especially that these underwriters know specific facts about the parish’s internal operations. This only strengthened my resolve that council members must make sound financial decisions and place high emphasis on conservative fiscal policies.

The picture that we painted of St. John Parish as a growing community with a diversifying tax base was well received. Our tax base, both sales and ad valorum, show healthy growth. The decisions made during the past five years, such as refinancing bonds for lower interest rates, selling the parish’s aging gas system and retiring debt, conservative budget estimates that have received excess sales tax collection and increased our fund balances, were all well received. These actions, along with the chief financial officer’s work in cleaning up our internal accounting practices, gave the underwriters a feeling of fiscal stability.

What does this mean to the average citizen? Initially, it means an interest savings. Our increased rating should save us somewhere between $150,000 to $300,000 in interest on the $18 million. However, in the long run, it will save in other areas such as insurances rates as well. The bottom line is that we will be looked upon more favorably by the financial community.

In my six years on the council, I must say that this is the greatest accomplishment that I have been a part of. It has only come to pass because of hard work and fiscal resolve. Now we must work even harder to maintain what we have fought so hard to achieve.