A recent rating earned from Moody’s Investor Services means Mason’s economic past will aid its financial future.

The city’s Aaa rating — the highest rating possible — is a “signature achievement” for Mason and reflects extremely well on the city’s financial health, history and outlook, according to Eric Hansen, city manager.

The rating is higher than the state of Ohio, which is at Aa1, and most municipalities within the state, he said.

Most financially responsible communities in Ohio are rated Aa2, while some may earn Aa1, but the Aaa rating is limited to communities with the highest credit rating.

“Very few governments achieve this rating,” Hansen said. “The rating is a reflection of council, staff and the quality of our community.”

Mason’s medium sized tax base benefiting from its location and economic role in the Cincinnati metro area is one of the conditions that lead to the high rating, according to Moody’s.

The rating also reflects Mason’s “healthy financial operations supported by sound reserves and a diverse income tax base,” as well as “a manageable debt burden with limited future borrowing expects,” Moody’s said.

Mason has a low income tax rate with the potential to seek an increase from the voters, if necessary, Hansen said.

“A city with a high income tax rate is less favorable since it would be difficult to seek a tax increase,” he said. “Mason continues to seek growth of its income taxes through economic development.”

Conservative budgeting, strategic investments in infrastructure, low debt burden, stable government and strong reserve balances also are contributing factors to such a rating, Hansen said.

There are numerous benefits to being Aaa rated, he said.

“Just like your credit rating, our debt is cheaper than it would otherwise be,” he said. “Also typically, when we’re issuing debt, we’re required to buy insurance and that insurance is to just provide another layer of security to the bond holders that if we fail to pay our debts that they’ll still be paid.”

With the Aaa rating, Mason’s rating is higher than most companies that would be issuing those insurance policies, Hansen said.

“It essentially means we don’t have to buy an insurance policy because we have better credit than the folks who would be insuring us,” he said.

That means an approximate savings of $700,000 annually, Hansen said.