9.1. SR 01-21-2014 - Laserfiche WebLink

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Criteria I Governments I U.S. Public Finance: U.S. Local Governments General Obligation Ratings:Methodology And Assumptions these conditions exists. The criteria measure government operational risk by distinguishing between the following two categories: • Typical services: the municipal government provides public safety,roads,basic planning and permitting, and some utility services. Governments providing significantly higher levels of complex or resource-intensive services also receive a score of'typical'. • Limited services: the municipal government maintains roads and provides only limited additional services that are mostly administrative or non-labor-intensive. It either does not provide public safety services or contracts them out to other governments.Any other services are limited and could be scaled back or discontinued if they became a burden. 57. No qualitative adjustment may raise the score if the initial score equals'5'. In some instances a score of'4' cannot be adjusted in a positive direction. No improvement in the final score occurs when a capped score of'4'is assigned because of the conditions described in paragraph 50. 58. Negative adjustments to the initial management score address circumstances or obstacles that prohibit management from planning and executing. Such conditions could include rapid management turnover or political gridlock or instability.The criteria also recognize that not all obstacles can be foreseen and use two consecutive years of failure to implement planned structural reforms as evidence that such an obstacle exists even if it has not been precisely identified. F. Budgetary Flexibility Score 59. The budgetary flexibility score measures the degree to which the government can look to additional financial flexibility in times of stress. Table 10 details the scoring for budgetary flexibility. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 12,2013 21 1190266 1300881696