AGENDA #1b
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Certificate of Achievement for Town of Chapel Hill 2004-05 Comprehensive Annual Financial Report
DATE: June 26, 2006
BACKGROUND
The Town of Chapel Hill has received the highest form of recognition in governmental financial reporting from the Government Finance Officers Association.
The Town was presented the Certificate of Achievement for Excellence in Financial Reporting for its Annual Financial Report. It has received the award for the past 20 years.
For the most recent year for which data is available, Chapel Hill was among 122 local governments in North Carolina that received the certificate. It was among only 21 municipalities that won both the Certificate of Achievement for Excellence in Financial Reporting and the Distinguished Budget Presentation Award from the association.
The certificate represents a significant accomplishment by a government and its management, according to the Government Finance Officers Association, which gives the awards. Recognition is determined by an impartial panel that reviews reports for “demonstrating a constructive ‘spirit of full disclosure’ to clearly communicate its financial story.”
The Town’s excellence in financial reporting has also contributed to the achievement of the Town’s continued high bond ratings. The Town of Chapel Hill’s bond ratings were confirmed at AAA from Moody’s Investor Service, the highest rating attainable from Moody’s, and AA+ from Standard and Poor’s, the next to highest rating attainable. The highest rating, a AAA rating, is given when a local government has a healthy tax base, conservative management, and is considered by financial analysts to be a good risk for investors.