City of Marshfield’s Bond Rating Designation Improves

Monday, August 18th, 2025 -- 11:00 AM

In 2019, the rating agency used by the City of Marshfield (Moody’s) downgraded the City’s bond rating from Aa3 to A1.

This was significant, since a lower rating generally leads to fewer bidders and higher interest rates on the City’s bonds. In 2020, Moody’s went one step further, adding a “Negative Outlook” to the A1 rating, suggesting that the City was in jeopardy of further downgrading if its financial situation did not improve.

At one point, the City’s undesignated spendable general reserve fund balance was at 9% of annual budgeted expenses, well below the auditor’s recommendation of 25-30%.

But since then, with outstanding teamwork by the City’s Finance staff, its financial advisor (Ehlers), the Mayor and Council, and department heads, we got the “Negative Outlook” removed in 2022, and in 2023, Moody’s restored the Aa3 bond rating that we had maintained before 2019.

As of December 31, 2024, our undesignated spendable reserve fund balance was slightly above 30%, putting us in much better standing with Moody’s. Look for the City to continue working to protect and improve its financial condition in the years ahead. 

Feel free to contact us with questions and/or comments.