Construction and funding for various departments in the City of Madison will not cost citizens more money than in previous years as a result of Moody's Investor Service issuing a "AAA" rating to Madison Sept. 13.

Moody's is among the world's most respected and oft-used sources for credit ratings, research and risk analysis, according to mayoral spokesperson George Twigg.

Moody's research assists investors in their analysis of credit risk — a single A rating being the lowest and the highest a triple-A rating. This means investing in bonds from the City of Madison is not a risky venture for businesses and contractors.

Factors of Moody's decision include the city's strong and diverse economy, sound financial operations, stability of primary revenue sources and a favorable debt profile.

Ald. Mike Verveer, District 4, who is also a member of the Central Madison's Business Improvement District Board, said the AAA rating means the city will be entitled to the best interest rate for downtown construction.

"Receiving the best interest rate on construction means that taxpayers will not have to pay as much for downtown projects," Verveer said.

Twigg said the AAA rating and lower interest rate enable the city to borrow less to complete city construction projects, which results in not having to pay back as much money for those developments.

The lower interest rates help the city pay for construction projects like the State Street parking ramp, State Street reconstruction and the Overture Center for the Arts.

According to Verveer, Madison has carried a high Moody's rating for as long as he can remember.

"This isn't really anything new for the City of Madison," Verveer said. "Madison has carried Moody's AAA rating year in and year out."

The rating is an indication that city hall is doing well, Verveer said. Twigg concurred with Verveer's sentiments, adding the government takes pride in the Moody's rating.

"The rating points to the fiscal responsibility of our government," Twigg said. "[It] means the local government has done its job allocating funds to useful projects."

Moody's also took into account Madison's economy, and the report cites the City of Madison as "one of the nation's strongest economies."

"[Madison] generally has always had a very healthy economy," Twigg said. "The rating emphasizes that Madison's economy and business climate is strong and getting stronger."

Madison has maintained a strong economy despite the high student population, which typically tends to bring down figures like income and employment.

The Moody's report also said income measures are relatively high in Madison, which indicates above-average wealth levels and that the city provides high-quality employment opportunities for citizens.

Verveer said the city is typically low among the nation's cities in terms of unemployment rates.

According to Twigg, Madison has shown solid employment growth, and the University of Wisconsin has helped by opening up many job opportunities.

"Jobs at UW certainly helped the rating," Twigg said. "Various scientific work on campus, like stem-cell research and work in other agricultural labs, have created jobs in Madison that not many other cities can claim to have."