Schools Denied Loan Because of City's Credit Rating
School administrators said the city's recent credit downgrade is a factor in why they experienced difficulty in securing a loan to lease school buses.
CalFirst Bank, which said it would loan Manassas Park money to lease-purchase new school buses, suddenly decided against extending the loan, and school officials believe it is—at least in part—because of the city’s credit rating. School division administrators had to negotiate a new agreement with Alliance Bank of Manassas Park to borrow no more than $255,732 for three new school buses, Superintendent Dr. Bruce McDade told the Manassas Park School Board during a work session Monday evening. The school board, in turn, voted Monday to approve the lease-purchase agreement with Alliance Bank, the only bank or bank branch in the entire city. School board administrators said the decision to go with Alliance Bank was last minute because they …
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Leo Mahoney
6:04 pm on Wednesday, June 6, 2012
I have been writing the mayor and city council members for the past 3-years urging them to institute fiscal austerity in an effort to move toward lowering the real estate tax rate in order to maintain competitiveness with PW County and Manassas residential property values. They have not listened and as a result the credit rating was cut substantially by the "street" and now you are beginning to … more ›