FOR IMMEDIATE RELEASE

September 25, 2018

Contact: Gene Richards, Director of Aviation

                (802) 343-9909

                Olivia LaVecchia, Mayor’s Office

                (802) 734-0617

Fitch Upgrades Burlington International Airport Credit Rating to “BBB”

On the Heels of Upgrade from Moody’s in May 2018, this Upgrade Demonstrates the Continued Strength of Airport’s New Airline Agreement, Managed Capital Program, and Stabilizing Debt Service

Burlington, VT – Mayor Miro Weinberger and Aviation Director Gene Richards today announced that Fitch Ratings has upgraded Burlington International Airport’s credit rating to “BBB” from “BBB-,” and revised the Airport’s credit outlook from positive to stable.

This upgrade is particularly significant. For the past six years, the Airport’s credit rating has been “BBB-,” which is the lowest a bond can be rated to be considered investment grade. With this ratings upgrade, the Airport is crossing an important threshold into greater financial health. (Please see the complete Airport ratings table below).

In its credit report, released on Wednesday, September 19, Fitch stated that “the upgrade reflects the Airport’s improved fiscal profile demonstrated in recent years.” The report particularly highlights the new Airline Agreement, which began in Fiscal Year 2017 and will extend for five years, noting that it “provides strong cost recovery mechanisms.” The report also cites the Airport’s strengthening liquidity position, stabilizing debt coverage, and conservative debt structure, and draws attention to the fact that the Airport’s four-year capital improvement plan does not call for issuing additional debt.

With this upgrade, the Airport is continuing a trajectory of recent success. In May 2018, Moody’s Investors Service upgraded the Airport’s credit rating to “Baa2,” the Airport’s highest rating since prior to its financial troubles in 2010.

“This upgrade is yet another indication that the Airport is having a great 2018,” said Mayor Miro Weinberger. “In addition to this continuation of years of financial improvements, I’m encouraged to see that enplanements are now starting to rise as well. I congratulate the Airport staff on this achievement and their hard work on this issue.”

“The extraordinary team effort to accomplish unprecedented financial and infrastructure improvements has been reflected in the upgrade ratings by both Moody’s Investors Service and Fitch Ratings,” said Gene Richards, Burlington International Airport’s Director of Aviation. “With the guidance of the City of Burlington, I am extremely satisfied with the progress that the Airport has made and I am pleased to see this well-deserved upgrade. Our financial discipline has directly led to the improvements in the Airport’s financial profile. These are great times for BTV Airport and our traveling public with more flying options and seats available than in past years. The credit for this significant accomplishment goes to the entire Burlington International Airport team, as well as the City of Burlington team of Rich Goodwin, Beth Anderson, and Mayor Miro Weinberger.”

The Airport has seen numerous positive trends in recent months, including:

  • Enplanements up 4.3 percent in FY 2018;
  • Growth in total operating revenues of 2.4 percent in 2017, and growth in preliminary operating revenues of 5.8 percent in 2018;
  • Strongest financial position in last five years, ending FY 2017 with 276 days’ cash on hand as calculated by Moody’s, and 186 days’ cash on hand as calculated by Fitch, which excludes customer facility charge revenue.

The Fitch report focuses on the new Airline Agreement, which is intended to maintain a debt-service coverage ratio (DSCR) of 1.5x into the future, with excess net revenues shared among air carriers. This arrangement, along with a well-received four-year capital improvement plan and a conservative debt structure, provide the basis for Fitch’s upgrade. The full report is attached.

The Fitch report also highlights the Airport’s proactive work to remain strong. “The Airport has recently also undertaken various steps to increase demand,” the report notes, “including offering new service incentives and launching aggressive marketing campaigns for new domestic routes for two years of operation.”

Fitch Ratings table:

Fitch's BTV Ratings History

Date

Action

Rating

Action

Outlook

9/19/2018

Upgrade

BBB

Revised

Stable

8/18/2017

Affirmed

BBB-

Revised

Positive

7/29/2016

Affirmed

BBB-

Affirmed

Stable

7/22/2015

Affirmed

BBB-

Affirmed

Stable

11/13/2014

Affirmed

BBB-

Affirmed

Stable

5/30/2014

Affirmed

BBB-

Revised

Stable

11/15/2012

Downgraded

BBB-

Affirmed

Negative

3/23/2012

Affirmed

BBB

Affirmed

Negative

3/23/2011

Downgraded

BBB

Revised

Negative

1/12/2009

Affirmed

BBB+

Affirmed

Stable

11/1/2005

Affirmed

BBB+

Affirmed

Stable

 

Please see the Fitch Rating Report for additional information.

 

# # #

Press Release Date: 
09/25/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE
September 26, 2018
Contact: Olivia LaVecchia
                (802) 734-0617

City Council Unanimously Supports Burlington's First Debt Policy

Burlington, VT – In an important step for the stability of the City’s financial future, on Monday, Sept. 24, the Burlington City Council voted unanimously to adopt a first-known debt policy for the City. The policy outlines a target and a maximum for the amount of General Obligation debt that the City can incur, as well as for the amount of “overlapping debt,” or the total amount of combined General Obligation Debt incurred between the City and the Burlington School District.

The new debt policy has been in development by the Administration and Board of Finance since January 2018 when PFM, the City’s financial consultant, recommended its creation as part of a memo advising the City on additional actions the City could take to improve its credit rating (please see the full memo from PFM linked below). Chief Administrative Officer Beth Anderson summarized the significance of a debt policy in her September 24, 2018 memo to the City Council (please see the full memo linked below):

“A debt policy is designed to enhance the quality of decisions related to debt issuance by providing consistency, continuity, order and discipline; clear guidelines for the type and structure of debt; parameters for the amount of debt to be undertaken; and a process to ensure cost effective issuance. A debt policy should articulate the City’s policy goals, which include a continued commitment to improving and sustaining the City’s financial position, increasing the City’s credit rating, and ensuring an affordable cost of borrowing for taxpayers. These actions are generally positively viewed by the rating agencies in reviewing credit quality.”

In response to the vote, Mayor Miro Weinberger released the following statement:

“This policy was crafted with our community’s infrastructure needs, best practices for responsible financial management, and the high property-tax burden that Burlingtonians currently face in mind. This new policy is intended to continue our financial progress as a City, support much-needed and historically important levels of community investment, and reassure our taxpayers that we are nearing the limit that they will be asked to invest in our infrastructure. I am deeply appreciative of the hard work that Chief Administrative Officer Beth Anderson and the members of the Board of Finance put into developing this policy, and I hope that it will prove to be an important part of our administration’s ongoing work to balance investment in our public goods, affordability for Burlingtonians, and responsible financial stewardship.”

For more information on the debt policy, please see the documents linked below:

# # #

Press Release Date: 
09/26/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE

September 20, 2018
Contact: Olivia LaVecchia                 
802.734.0617

 

Burlington, VT – Today, Mayor Miro Weinberger released the following statement in response to the Trump Administration decision to limit the number of refugees entering the United States to 30,000:

“In 1939, in one of the country’s most regrettable acts, the United States refused entry to the German ocean liner, The St. Louis, forcing over 900 Jews fleeing persecution to return to Europe where hundreds of them ultimately perished.  With this announcement by the Administration on Monday, President Trump has refused safe harbor to more than 80 St. Louis ships.  By reducing the number of refugees that can legally resettle in the US to 27% of the level it was during President Obama’s last year, President Trump has hurt communities like Burlington that benefit from the driving ambition, culture, and labor of immigrants, further lowered our moral standing in the world, and shown once again that he has no idea what has made America great.”

Press Release Date: 
09/20/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE
September 20, 2018
Contact: Olivia LaVecchia
                802-734-0617

Mayor Miro Weinberger Announces 7-Point Clean Water Resiliency Plan to Stabilize and Upgrade City’s Wastewater & Stormwater Infrastructure

The Clean Water Resiliency Plan will protect Lake Champlain from discharges with $30 million of critical investments at a cost of approximately $5/month for the average Burlington household

 

Burlington, VT – Today Mayor Miro Weinberger, along with the Department of Public Works, City Councilors, and other partners, announced the Clean Water Resiliency Plan: a seven-point, $30 million initiative to stabilize, modernize, and upgrade Burlington’s wastewater and stormwater infrastructure.

The City has been working toward this plan for years.  Over the last three years, as the City has been pursuing major investments in other areas of the City’s infrastructure, the Department of Public Works (DPW) commissioned comprehensive third-party studies of the City’s wastewater and stormwater systems, and discussed with the City Council upcoming needed investments in each of the last two budget years.  The Clean Water Resiliency Plan accelerates these planned investments as a result of the high level of unplanned discharges that Burlington experienced this summer.

The investments in the Plan are proposed to be funded by a $30 million wastewater and stormwater revenue bond.  This Monday, the City Council will vote to place the bond question on the November ballot, and if passed by voters, new investments will begin this winter.

“This Plan is a continuation of the historic infrastructure investment Burlington began in 2016 with the support of three-quarters of the City’s voters,” said Mayor Miro Weinberger.  “By acting decisively at the ballot box this fall we can take a huge step forward in the 150-year-long effort to create a city that thrives in balance with our spectacular natural setting.”

“This comprehensive reinvestment proposal is the result of three years of hard work from a team of consultants, staff, and industry experts.  We have inspected our plants and pipes, calculated the risks and consequences of failure, and begun preliminary design on critical elements – all to ensure that we have an effective, affordable, and well-honed proposal for Burlingtonians to consider,” said Chapin Spencer, Director of Public Works.

“I could not be more pleased with the work that my Water Resources team has accomplished in accelerating our ongoing capital planning efforts in the 10 weeks since our July incident,” said Megan Moir, Assistant Director of Water Resources. “Collectively, our many long hours have enabled us to get to a more immediate plan for reinvestment in our critical wastewater and stormwater infrastructure and minimize our risk of additional discharges and beach closures.”

The Plan outlines seven key strategies for improvement across the City’s wastewater and stormwater systems:

1. Investing in Wastewater Treatment Plants: Burlington’s three wastewater treatment plants have only been upgraded twice since they were constructed p the 1950s and 1960s, and it’s now been 24 years since the most recent comprehensive upgrade. DPW has made proactive improvements, and yet, the plants’ aging equipment – and particularly their disinfection systems – have experienced failures this summer that have resulted in three permit violations and permit-required beach closures. Based on a review of these failures, and risk based capital planning analyses across all wastewater system components, DPW has identified more than two dozen necessary improvements across the three plants, including systems that will add crucial redundancy and added layers of system alarms.

2. Updating Pump Stations: While most of the City’s sewer system functions through gravity, in 25 low-lying areas, the City relies on pump stations. Some of the current pump stations are more than 40 years old, and in recent years, have experienced failures that have resulted in wastewater discharges. DPW has assessed all pump stations, and identified 11 high-risk stations for substantial repairs. These improvements will increase the reliability of the pump stations, and reduce the risk of wastewater flowing into water bodies, roadways, and private properties.

3. Relining and Rehabilitating Sewer and Stormwater Pipes: More than 140 miles of pipes comprise the City’s sewer and stormwater systems. Many of the sanitary and combined sewer pipes are over 100 years old. While the separate stormwater system is much younger, the traditional material selection of those pipes at the time of construction, corrugated metal pipe, has been corroded by the salting of our roads necessary for winter driving safety.   DPW has been conducting a systemic risk based assessment of the sewer and stormwater collection systems, and has identified 13 miles of the highest-priority sections to reline or replace.

4. Repairing Stormwater Outfalls: The City’s 101 outfalls, or sites where separated stormwater discharges into watersheds, are in various states of repair. When these outfalls fail, they can erode public and private property, undermine buildings and roads, and impact water bodies with sediments and nutrients. DPW has identified the five outfalls most in need of repair.

5. Implementing Pollution Prevention Programs: As the City has received more wastewater from the beverage and food industries, the organic content in the wastewater has increased and resulted in disruptions to the biological treatment process. In order to reduce the impact of this increased strength, the City is working to develop an industrial wastewater pollution prevention program that provides a clear framework for what these industries can do to reduce the strength of the water that goes down their drains and reaches the wastewater plants.  As evidence of the City’s intention to work with industrial customers in a way that allows these businesses to flourish, while also ensuring the protection of the City’s water resources, a portion of the Plan involves funds that can be offered as low interest loans to support prompt implementation of improvements at these industries.

6. Constructing Green Infrastructure: During intense storm events, the amount of stormwater entering the City’s combined sewer system (the pipes that carry both sewage and stormwater) can exceed capacity and cause overflows. The City seeks to expand green wet-weather infrastructure such as rain gardens to mitigate the intensity of these stormwater flows while also creating other community benefits, like green space and shading.

7. Completing Integrated Planning: DPW is already underway with a first-in-the-state Integrated Planning initiative that coordinates future stormwater and wastewater investments. Along with this Integrated Planning process, supplemental planning efforts will ensure that DPW can prioritize upgrades that deliver the greatest return on investment, minimizing rate impacts while also maximizing the performance of Burlington’s water infrastructure.

While this Plan represents a long-term solution to stabilize Burlington’s wastewater and stormwater infrastructure, the City has also worked hard to implement interim measures. In the wastewater system, DPW has rewired the main wastewater plant’s disinfection system and expanded staffing at the plant during off-peak storm events, among other measures. DPW is also taking proactive steps when it comes to stormwater management, including requiring new developments to fully manage the stormwater produced by any new impervious surface created by the project, and to mitigate the stormwater running off any existing impervious surfaces on their property.

Since voters approved initial funding for the City’s Sustainable Infrastructure Plan in 2016, the City and DPW have made major progress repaving streets, rebuilding sidewalks, and rehabilitating water mains. The City knew that improving our community’s water management systems would require additional investment in the future, and as a result of this year’s system failures and concern from the public, made the decision to accelerate this capital planning and propose the Clean Water Resiliency Plan.

Cost and Affordability Summary

Mayor Weinberger and DPW are vigorously pursuing strategies to reduce the impact of this bonding proposal on ratepayers. After five years, ratepayers can expect to see a total 12.2 percent increase in their wastewater bills (~$4.26/month for the average user) and a 16.7 percent increase in their stormwater bill (~$1.10/month for the average user). Due to aggressive cost-mitigation measures, when the borrowing is fully phased in, average single-families will see an approximately $5.36 increase in their monthly water bills.

By using the cost-mitigation strategies detailed below, the City has already been able to reduce the impact on ratepayers by approximately 40 percent:

  • By borrowing from the Clean Water State Revolving Fund, the City will save approximately $8 million over the life of the $30 million loan because of the lower cost of administrative fees and ability to defer pay back on planning, design, and construction costs until one year after construction is completed.
  • The City will also reallocate existing Water Resources revenues to offset some debt service costs by dedicating a portion of the budgeted capital funds (or “PayGo Capital”) to debt service. The PayGo Capital will accelerate reinvestments into these utilities while minimizing bond-driven rate increases so that existing resources will pay for approximately 30 percent of the new bonding.
  • The Water Resources management team will continue to pursue additional rate mitigation strategies after the bond is passed. These strategies include applying for State grants and loan forgiveness or subsidy, evaluating alternative strategies to the current Payment in Lieu of Taxes (PILOT) paradigm, considering additional fees for service from users (for example, fire services to buildings, project review, and connection fees), and exploring minimizing rate increases for residential and low-income users through alternative rate structures and affordability programs.

Major elements of wastewater proposal:

Project

Cost

Disinfection and SCADA/PLC upgrades (Main, East, and North)

$1,438,000

Other Wastewater plant (Main, East, and North) capital needs over next five years

$11,403,000

Wastewater planning studies to inform decisions for a future bond (East plant suitability, dewatering)

$180,000

Upgrades to 11 pump stations with the highest need

$2,595,000

Rehabilitation of 6.72 miles of collection systems (sewers)

$3,360,000

Asset management systems

$173,000

Industrial wastewater program development and pass-through lonas

$425,000

City project management staff

$282,000

Wastewater total request

$19,856,000

 

Major elements of stormwater proposal:

 

Project

Costs

Upgrades to five (out of eleven) high-risk stormwater outfalls

$2,350,000

Rehabilitation to 6.3 miles of stormwater collection system pipes

$3,160,000

Wet weather mitigation and disinfection, including combined sewer runoff reduction at the Pine Barge Canal and a Pine Street CSO disinfection station

$2,172,000

Great Streets and City Hall Park stormwater improvements

$1,650,000

Stormwater regulatory obligations

$315,000

Asset management systems

$173,000

City project management staff

$282,000

Stormwater total request

$10,102,000

 

The great majority of these investments are targeted toward stabilizing and improving the existing wastewater and stormwater systems in order to minimize unplanned discharges like the ones Burlington has seen in 2018. In approximately four to five years, following both the completion of the City’s Integrated Planning process and the resolution of significant regulatory and State financing questions, the City anticipates significant additional investments. These investments will target further minimizing the impact of combined sewer runoff, as well as maximizing the reduction of phosphorus and other pollutants into the Lake from stormwater and wastewater.

Broad Support for the Clean Water Resiliency Plan

“The plan we are putting forward is a responsible plan with the goal of protecting the Lake, which along with the Bike Path and the Church Street Marketplace, is one of the crown jewels of Burlington, the region, and the entire State,” said City Council President Kurt Wright. “From the people I have talked to, I believe there is strong support for this plan, which was also unanimously endorsed by the Board of Finance.”

“Burlington has a long legacy of protecting the environment,” said City Councilor Brian Pine. “This investment is critical to improving the health of our Lake.”

“At the City level, the most important action we can take to protect Lake Champlain is to make needed upgrades to our wastewater treatment system.  We owe that to our Lake,” said City Councilor Joan Shannon. “Support of this bond is consistent with the pledge that I and many other City residents have taken to do all that we can to improve our water quality in Lake Champlain.  It is also consistent with the priorities I am hearing from my constituents.  I am fully supportive of this bond and encourage the City Council and citizens of Burlington to support the bond as one part of doing all that we can to protect our Great Lake.”

“As the Chamber continues to advocate for responsible growth that positions Burlington as the location of choice for businesses and their employees, we need the infrastructure to keep pace with demand,” said Tom Torti, President and CEO of the Lake Champlain Regional Chamber of Commerce. “The Mayor’s proposal addresses the inadequacies of our aged infrastructure and embodies the progressive leadership that we have come to expect from the Mayor and his team.”

"As a waterfront destination, ECHO applauds the City for investing in stormwater infrastructure - a critical step in protecting the public asset of our lakefront water,” said Phelan Fretz, Executive Director of the ECHO, Leahy Center for Lake Champlain. “Scientific data clearly shows this investment pays dividends in public health protection, preserving vital habitat and ensuring safe beaches for Vermont families and visitors."

“I support any effort to clean up the waters of Vermont,” said State Representative David Deen. “I especially want to increase compliance with the spirit and specifics of Act 64 the Vermont Clean Water Act, and improvement in stormwater and wastewater treatment certainly fit into that category.”

“The Vermont Clean Water Act of 2015 requires 'everybody in,' and Burlington’s new clean water plan, supported by a $30 million bond, is very good news for the community, the lake, and the environment,” said State Senator Chris Bray, Chair of Senate Natural Resources and Energy Committee. 

Background: 70 Years of Burlington Lake Protection Progress

Before Burlington’s first wastewater treatment plant (WWTP) was constructed in 1953, all wastewater and stormwater flowed directly into Lake Champlain, Englesby Brook, and the Winooski River.

  • Combined Sewer Overflows and 1990s Upgrades: As is typical with many older cities, Burlington is one of 772 communities around the United State that have combined sewer systems for wastewater and stormwater. Any time the volume in the combined sewer system exceeds the capacity of the wastewater treatment plant and sewer pipes (due to heavy rain falls), a mixture of untreated wastewater and stormwater overflows into Lake Champlain. These combined overflow system (CSO) protects the WWTPs and prevents sewage from backing up into homes, but it also has water quality impacts.

    In the 1990s, on-shore sewage discharges into the Lake during most rain storms caused frequent beach closures, and Burlingtonians passed a $52 million bond to upgrade the WWTPs to improve phosphorus removal, increase hydraulic capacity, and reduce the locations, frequency, and volume of the CSOs. This bond included work to eliminate seven of the twelve CSO points and increased the capacity at the WWTP to treat and disinfect an estimated minimum 170 million gallons (on average)  of annual combined sewer wet weather flow that had previously been flowing directly into the Lake.

  • Additional CSOs Discovered and Monitored: More recently, the City has discovered two additional, previously unknown, CSO points as a result of outfall inspection and mapping efforts in 2010 and 2015. DPW has installed improved alarm technology at all known CSO points to better monitor, quantify, and report the combined sewer overflow that occurs in an even and has recently installed flow meters to measure the quantity of overflow. The City has taken steps to divert and slow-down stormwater runoff in the areas upstream of the the CSO points, including the construction of subsurface infiltration systems. As a result of these efforts, overflows at four of the five CSO points have significantly decreased in frequency and volume in recent years. 
  • Creation of the Stormwater Utility: In 2009, the City of Burlington was the second municipality in Vermont to take the important step of creating a Stormwater Utility, which ensures more than $1 million per year in dedicated funding for continued investments in Water Quality improvements. Also, the wastewater ordinance was updated to include stormwater requirements and the authority to require any new development and redevelopment projects to better manage their stormwater on site.

City officials will be available to answer any questions and discuss the Clean Water Resiliency Plan with the community next week at an event, “Town Hall: A Community Conversation on Water Quality.” The event will be held on Thursday, Sept. 27, at 6pm in Contois Auditorium in City Hall.

For more information on the proposal, please see the memorandum available at the following link: Proposal for a Resilient City – Reinvesting in Burlington’s Wastewater & Stormwater Infrastructure.

# # #

 

 

Press Release Date: 
09/20/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE

 

September 10, 2018

Contact: Jordan Redell

                802.881.7020

 

Burlington, VT – Today, Mayor Miro Weinberger, Attorney General TJ Donovan, Vermont State Police Colonel Matthew Birmingham, Burlington Police Chief Brandon del Pozo, and representatives from the Chittenden County State’s Attorney’s Office held a press conference at the Burlington Police Department to announce the formation of a City and State Task Force to investigate allegations of violent crimes at the St. Joseph’s Orphanage.

 

Mayor Weinberger issued the following statement at the press conference:

 

“We are gathered here this morning at the Burlington Police Department, located at the southern end of North Avenue.  We stand less than three quarters of a mile south of the former St. Joseph’s Orphanage.  Two weeks ago Buzzfeed News published a lengthy and detailed story alleging decades of terrible abuse and violent crimes at that institution.  We are here to announce this morning the launching of a joint City and State investigation of these allegations.

 

“I am so deeply saddened to hear that these crimes and abuse took place in Burlington. These children were some of the most vulnerable members of our community, and our community failed to protect them.

 

“Some may ask what good can come from the investigation of an institution nearly four decades after it closed.  There is no doubt that this investigation comes far too late to help all of the victims of the alleged crimes.  However, nonetheless, there are at least three reasons to proceed.

 

  1. “There may still be an opportunity to secure justice for some orphanage victims.  The recent allegations include reports of at least three child killings.  Murder is a crime with no statute of limitations, and the long-standing policy of Burlington and State police is to keep murder cases open until they are solved.  If it is possible to make murder charges at this point we will, whether the perpetrators are living or dead.

 

  1. “The stories of the victims must be heard and told.  I believe these reports of abuse, and twice our community failed the children of St. Joseph.  First, we failed them by allowing these terrible, intolerable conditions to persist in this community for decades.  Then, in the 1990s when dozens former orphanage residents came forward to report what had occurred, the justice system did not provide justice and closure for these survivors. 

 

“This morning we are asking the survivors, their families and friends to come forward again to share your stories.  By the end of the week the task force will set up a system for survivors to contact us and share what they know, so we may have a full and in-depth accounting of what occurred at St. Joseph’s.  We pledge to do thorough investigation and a public accounting of what occurred.

 

  1. “We must fully understand what happened at St. Joseph’s and why to ensure that it never happens again.  It is shocking to be confronted with reports that horrific, systematic abuse took place within the tightknit, compassionate community for decades.  How do we as a community ensure that we mistakes like this are not made again?  How do we ensure that our institutions responsible for caring for the most vulnerable succeed at their critical missions.  These are questions that this investigation must seek to answer.

 

“I welcome Bishop Coyne’s statement yesterday that the Catholic Church will cooperate fully in this investigation. This commitment stands in stark contrast to the Church’s prior posture towards the St. Joseph’s Orphanage in prior decades, and even from decisions made by church authorities in other states during recent investigations.  We have contacted Bishop Coyne’s offices this morning and intend to sit down and begin discussing this collaboration as soon as possible.

 

“I also want to thank our partners the State Police, the State’s Attorney, and the Attorney General for moving so quickly to stand together this morning.  Together we have the capacity to bring an overdue reckoning for the survivors of St. Joseph’s. Thank you.”

 

###

 

Press Release Date: 
09/10/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE

Contacts:   Jordan Redell, City of Burlington

                     802-881-7020

     

                     Ara Hagan, Hagan Associates

                     802-863-5956, ext 206
                    
ahagan@haganmarketing.com

 

Burlington, VT – The Rock Point and Arms Forest Coalition – which includes Parks Foundation of Burlington, the Lake Champlain Land Trust, the Episcopal Church in Vermont, and the City of Burlington – announced the goal of permanently protecting critical shoreline forests and improving public access to a 163-acre forest block in the heart of Burlington to be protected and forever open to the public. This urban wilderness stretches from Lake Champlain to North Avenue and provides the scenic backdrop for the Burlington Waterfront’s spectacular sunsets and provides a welcoming sanctuary for reflection and recreation in the heart of Burlington.

 

“Over the last six years the City has succeeded at expanding public access to and enjoyment of Lake Champlain by creating new parks and improving public lake access in the Urban Reserve, behind the Water Plant, and on the western acres of Cambrian Rise,” said Mayor Miro Weinberger. “Expanding and improving public access to 163-acres of spectacular natural lands in the heart of the City dramatically expands this effort and will further ensure that future generations of Burlingtonians will continue to enjoy an outstanding quality of life and access to the outdoors even as we grow and evolve. When completed, City residents will have access to the Lake Champlain shoreline nearly contiguous from Perkins Pier to Rock Point. Thank you to the Episcopal Church, the other members of the Coalition, and our City team for working tirelessly to make today’s announcement possible.”

 

“We are so proud to be working to conserve one of the most ecologically significant shoreline forests in our 40-year history," noted Chris Boget, Executive Director of the Lake Champlain Land Trust. “Not only does this incredible conservation project protect the water quality of Lake Champlain, it also allows folks to visit the old-growth trees, majestic cliffs, and restored trails of this magnificent natural area.”

 

The Coalition has worked together to conserve 113.5 acres at Rock Point with easements to allow for conservation and public access and improve the trail system on an additional 50 acres of the adjacent Arms Forest. The fundraising goal for conservation, stewardship, and trail improvements for public use is $818,000. Funds have now been contributed through the City’s Conservation Legacy Fund, supporters of the Coalition groups, the Vermont Housing and Conservation Board, the State of Vermont Recreational Trails Program, and private donors, leaving the Coalition with less than $50,000 to reach our goal.

 

“The conservation and stewardship of Rock Point fulfills the vision of the Episcopal Church in Vermont, which has owned Rock Point since 1865. We wanted to protect it and also provide a welcoming sanctuary in the heart of Burlington for a growing city. Through our community gardens, camp, conference center and many programs, we serve the wider community, while also doing our part to care for creation," said Bishop Thomas Ely. The Episcopal Church in Vermont is also making an investment of over $1.9 million in upgrading its facilities and trails, purchasing a 35-tracker solar array, and providing for future stewardship though its separate Partnership Campaign for Rock Point.

 

This is great news for our community and demonstrates the strength of the Coalition. Our collaboration has inspired dozens of residents to contribute to our silent capital campaign. Today we launch the public phase of the campaign, and we are excited to have a long-time friend and loyal supporter who will match all new donations, dollar-for-dollar, to help us close out the campaign," said John Bossange, Chair of the Parks Foundation of Burlington.

 

Donations can be sent securely online by visiting: www.parksfoundationburlington.org or www.LCLT.org. Or mailed to: Parks Foundation, 645 Pine St., Suite B, Burlington, VT 05401 or Lake Champlain Land Trust, 1 Main St., Suite 205, Burlington, VT 05401.

 

# # #

 

Protecting Natural Resources

Conservation of this land protects several different natural communities including Limestone Bluff Cedar-Pine Forest, Dry Oak-Hickory-Hophornbeam Forest, and a rare Lake Sand Beach natural community. The protected land would also conserve the habitat for dozens of rare and state-threatened species including Harsh Sunflower, Sweet Joe-Pye Weed and Squarerose Goldenrod.

 

The Rock Point Peninsula is home to the Champlain Thrust Fault, which is the largest thrust vault in North America and visited by geologists from around the world. The thrust is created by two different types of bedrock, Iberville shale which sits beneath Dunham Dolostone that was formed 40 million years earlier. The inversion was created during the Taconic Orogency (440 million years ago) when the land that is now known as Maine and New Hampshire collided against present day Vermont and created the Green Mountains. The entire thrust fault extends from the Catskills to Canada, but is uniquely visible on the Rock Point Peninsula.

 

Project Background

The Rock Point and Arms Forest Coalition was formed in 2017 with a mission to permanently protect the Rock Point forest, create safe access points from the Burlington Bike Path and local neighborhoods, ensure that the area will remain accessible to the public forever, and improve the trails of this urban natural area.

 

The Lake Champlain Land Trust (LCLT) and Vermont Housing and Conservation Board (VHCB) will hold a Conservation and Public Access Easement on lands owned by the Episcopal Church in Vermont. The project uniquely combines private ownership with public access trails, as LCLT, VHCB, and the City of Burlington will ensure natural resource protection and permanent access to the property.

 

The project will help to tie the current trails to the greater trail network of the area, which includes connectivity between the City of Burlington's Arms Forest and the Burlington Bike Path/Greenway. In addition, public access from North Beach will enhance the experience of our residents and visitors to North Beach and the Campground.

 

About The Rock Point and Arms Forest Coalition Organizations

 

The Parks Foundation of Burlington

The Parks Foundation of Burlington is an independent, 501(c)3 non-profit organization formed in 2013 with the purpose to seek opportunities to enhance park assets and recreation programs in Burlington, Vermont through specific initiatives. The Foundation’s signature project—a full renovation of the eight mile-long Burlington Bike Path—is well underway and completed sections are receiving rave reviews from path users.

 

Friends of Rock Point and the Episcopal Church in Vermont

Since 1855, Rock Point has served as a unique center of the Episcopal Church in Vermont, welcoming friends and neighbors attracted to its natural beauty and its peaceful, quiet, and social embrace. Each year, nearly 10,000 people come to Rock Point, finding a place to walk, seek solitude, learn, play, sing, pray, think, share, and be. The mission of the Rock Point Center is to be a welcoming sanctuary of spirituality, creativity, community, education, training, and environmental stewardship. Friends of Rock Point is a 501(c)3 non-profit organization formed to support the conservation and enhancement of Rock Point.

 

Lake Champlain Land Trust

The Lake Champlain Land Trust is a member-supported, 501(c)3 non-profit organization working with the community for the last 40 years to save land, conserve places to hike and paddle, and protect Lake Champlain’s water quality. The Lake Champlain Land Trust has conserved over 10,000 acres, 17 islands, and 21 miles of lake and river shoreline in both Vermont and New York—including more than 27 public access areas. The Lake Champlain Land Trust will hold several conservation easements and forever monitor the protections of the Rock Point land.

 

Burlington Parks, Recreation and Waterfront Department

The Department of Parks, Recreation and Waterfront oversees all of Burlington’s 35+ Parks and Recreation Programs covering 550+ Acres of Open Space, four public beaches, street trees and Greenways, Community Gardens, North Beach Campground, the Community Boathouse Marina, and other lands and facilities.

 

            

 

Press Release Date: 
07/30/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE
July 11, 2018
Contact: Jordan Redell

                 802.881.7020

 

Burlington, VT – Today, Mayor Miro Weinberger released the following statement in response to a wet weather discharge event that occurred late last night:
 

“During last night’s storm, a hardware failure at Burlington’s wastewater treatment facility caused a large, unplanned release of treated, but non-disinfected, wet weather discharge into Lake Champlain. These unintended, avoidable releases are completely unacceptable to to Burlingtonians, to Vermonters, and to me. The City’s Department of Public Works (DPW) has a core responsibility to properly treat our sewage and stormwater and fully protect the lake.

 

“In response to this discharge, I have directed DPW Director Chapin Spencer, who appreciates and fully understands the importance of resolving this issue, to: 1) immediately devote every available resource, including outside experts, to fully investigate the causes of the recent mechanical discharges and to immediately implement fixes to prevent them from happening again; and 2) complete by December 1, 2018 the capital upgrade planning for the wastewater plants currently underway to give the City Council and the voters the opportunity to consider investing in needed improvements on Town Meeting Day 2019.”

 

*To read the Mayor’s recent statement regarding the City’s ongoing work to protect our lake, please visit our Mayor’s Office website.

 

# # #

Press Release Date: 
07/11/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE

June 19, 2018
Contact:  Katie Vane
                  802.734.0617
 

City Council Unanimously Approves Mayor’s Fiscal Year 2019 Budget
Continues City’s Momentum Investing in Infrastructure, Public Safety, and Our Most Vulnerable, While Also Limiting Property Tax Rate Increases

 

Burlington, VT – Mayor Miro Weinberger today announced City Council’s unanimous approval of the Fiscal Year 2019 (FY19) budget at the June 18, 2018 Council meeting.

 

“The goals the Administration set for this year’s budget were ambitious: continue the City’s momentum investing in infrastructure, public safety, and a host of efforts to protect and support our kids and vulnerable populations, while also continuing to limit property tax rate increases,” said Mayor Miro Weinberger. “We have done all of that and more, thanks to the hard work of CAO Beth Anderson and her team, our Department Heads and their teams, and the support of City Council. And, for the first time, the City’s unassigned fund balance has grown through good budget management to a level that exceeds the City’s 10 percent target. This gives us the opportunity to invest in a number of new projects that will continue the City’s progress reducing future costs and improving operations and services provided to taxpayers.”

 

Please see the full text of Mayor Miro Weinberger Fiscal Year 2019 Proposed Budget Memorandum to City Council below.

 

Mayor Miro Weinberger’s Fiscal Year 2019 Proposed Budget Memorandum to City Council

 

Herein is the Mayor’s proposed budget for Fiscal Year 2019 (FY19).  This budget builds upon the strong financial foundation re-established over the last six years through the commitment of the Administration, City Council, and Burlington voters. In particular, I would like to recognize the hard work of our Chief Administrative Officer, Beth Anderson, who has led the budget process for the first time this year, the members of her team, and the City Department Heads and their teams, who deserve a great deal of credit for our financial progress.

 

This budget will continue to advance important community goals while also making prudent and strategic investments designed to help reduce future taxpayer costs. The total budget reflects feedback from four work sessions with the City Council in May, and includes over $200 million in total annual expenditures. This memo summarizes the highlights of the FY19 budget.

 

Summary: The FY19 City Budget continues the city’s progress on infrastructure, public safety, and new equity initiatives while also continuing property tax restraint and fiscal improvement

The goals the Administration set for this year’s budget were ambitious: continue the City’s momentum investing in infrastructure, public safety, a host of relatively new efforts to protect and support our kids and vulnerable populations (the low-barrier shelter, the Burlington Early Learning initiative, the Street Outreach program) and other emerging needs, while also continuing the half-penny tax cut to the General City Tax rate first made in FY17.  Keeping operational taxation at the same level was challenging, as it has now been five years since we increased the property tax rate for municipal operations and, unlike most municipal expenses, this primary municipal funding source does not increase as inflation rises. 

 

I am pleased to submit to you a budget that achieves these important goals.

 

FY19 Budget is Built on a Strong Municipal Financial Position

In November 2017, Moody’s Investors Service upgraded the City’s credit rating from A3 to A2, representing an upgrade of four steps in three years. In explaining their decision, Moody’s Financial Services (which provides an independent assessment of the creditworthiness of the City) called out the City's improved financial position with sound reserves following four consecutive years of operating surpluses, as well as the City’s strength as the economic center of Vermont (Aaa stable).  This budget should enable the City to continue to improve its financial position as has been our collective goal for years.

 

The City continues to make great strides with its other enterprise funds. In March 2018, Moody’s upgraded the Burlington International Airport credit rating to Baa2 from Baa3 and revised the Airport’s credit outlook from positive to stable. This is the second credit rating upgrade the Airport has earned since 2014 and represents its highest rating since prior to the multiple downgrades of the Airport in 2010.  In its Credit Report, Moody’s stated that “the upgrade reflects continued improvement in liquidity and stability in debt service coverage, combined with a strengthened cost recovery framework following the adoption of a five-year airline agreement that is residual in nature and provides for a 1.5x DSCR and 200 days cash on hand.”

 

Moody’s also affirmed in November 2017 the Burlington Electric Department’s “A3” credit rating and affirmed the City’s Water Utility “A1”.  The BED rating cited a number of credit strengths, including: strong and focused management working on industry transition, including ensuring utility fixed cost recovery through rate structure, and diverse and substantially renewable power supply resource mix, which mitigates industry challenges such as market price disruptions and carbon regulation.  In its rating summary for the Water System Revenue Bonds, Moody’s recognized the City for its stable service area and ample system capacity, healthy debt service coverage and improving liquidity, and sound legal security provisions.

 

Further, the Administration continues efforts across City departments to identify opportunities to operate more efficiency and identify potential cost savings.  Our work includes consolidated purchasing, process improvements, and expanding data analysis to identify opportunities.   The benefits of these efforts can be seen in the reduced operational costs experienced in FY18 and the additional reductions projected for FY19.

 

Early Achievement of Unassigned Fund Balance Target Creates Investment Opportunity   

An exciting element of this year’s budget is that we have an opportunity to make important municipal investments to reduce future costs and improve operations with approximately $2 million of Unassigned Fund Balance reserves that exceed the targets that we set several years ago.

 

In 2015, the Administration and the City Council set a new Fund Balance Policy that called for the accrual of an Unassigned Fund Balance of at least 5 percent and no more than 15 percent by FY19.  The purpose of the policy is to create a healthy operating reserve for the City that will help insulate it in future years from unpredictable changes in the economy or unexpected events, and the creation of this new policy was specifically cited by Moody’s as a major factor in their 2016 credit rating upgrade restoring the City’s A rating.

 

The initial policy envisioned the City reaching the 5 percent threshold by 2019.  We outpaced this projection substantially, and ended FY17 with an Unassigned Fund Balance of $8.4 million, a figure representing approximately 14 percent of operating costs.  We are proposing opportunities to invest Unassigned Fund Balance dollars in excess of the 10 percent to support a number of projects that we believe would result in benefits to the City, including improved service to residents, operational efficiencies, and cost savings.  We have included $848,000 in investments in the budget at this time, and plan on pursuing three separate studies that will likely result in additional recommendations for investment by the end of the calendar year.  The largest current proposal is to commit $500,000 for the upcoming reappraisal, which we now have a statutory obligation to pursue in a timely fashion.  This commitment, combined with funds we have set aside in past years, should give us approximately sufficient funds to complete that major work without the need to raise taxes for that purpose.

 

By separate cover I have submitted a memo and chart to you with additional detail about these current and possible future investments.

 

FY19 Budget Continues Investments in Public Safety

Burlington remains one of the safest cities in America, but like every other city across the country, we are facing major law enforcement and public health challenges in the form of a growing opioid crisis, years of increases in the number of requests for service related to mental health issues, and public demands for changes in the way we police.

 

The FY19 Budget sustains all of the investments in public safety in recent years while making a number of important new investments, including:

  • Increasing the Police Department funding to grow the authorized size of the department to 105 sworn officers (from 103.5 in FY18 and 100 in FY17).  The impact of this increase on Burlington taxpayers is mitigated by the second year of our three-year federal grant providing matching funds for this additional staffing.
  • Funding a new pilot to bring a mental health counselor for the Burlington Fire Department.  Our firefighters are on front lines of mental health and opioid crises and often experience very traumatic situations.  We have long offered mental health supports to our police officers and this represents an important new investment in the wellbeing of our outstanding firefighters.
  • Providing for a pilot expansion of the lifeguard season at North Beach, in response to Burlington Fire Chief Steven Locke’s fall 2017 policy review following the tragic death of Burlington High School student Christian Kibabu. We will be piloting this expansion at North Beach because it continues to be the most frequently visited beach in Burlington, and will assess it after the end of this summer season.
  • The investment made in a new Computer Assisted Dispatch system in FY18 will result in the launch of this new operational capacity in early FY19 and expenses related to this new system are now part of the Fire Department’s operating budget.
  • Continuing to grow the capability of the Fire Department’s paramedicine capability.  By the end of FY19 we project to have 13 paramedics (up from nine currently), nearing the full-staffing goal of 15 that will ensure the City sends a paramedic on all medical calls.

 

FY19 Budget Includes Important Investments in Kids, Seniors and the Most Vulnerable

The FY19 budget includes continued support for recent investments to expand opportunity for Burlingtonians of all backgrounds and incomes, including:

 

  • Funding for Early Learning Initiative. The budget includes a second year of funding for the Early Learning Initiative (ELI) focused on Burlington children from birth to age 3. In FY18, the City provided $500,000 in capacity grants to Burlington childcare programs that provide high-quality care to low income children and commit to increasing the number of slots available for children ages 0 – 3. The initial grant attracted one small but important application, and the City moved quickly into a second round of grant awards that resulted in seven applications exceeding $500,000.  We look forward to bringing these strong proposals to the Council for approval in the coming weeks.  In year two, consistent with discussions with the Council’s CDNR Committee, we anticipate the program transitioning to funding high quality child care scholarships for low-income infants and toddlers.

 

  • Extended Low-barrier Shelter Pilot. Over the past four winters, the City has supported the work of CVOEO, COTS, and most recently the Community Health Centers of Burlington to run a low barrier warming shelter from November to April. The shelter has been successful in reducing the State’s motel room cold weather exception program costs, saving taxpayers substantial money each year, and helped some of our most vulnerable residents find jobs and permanent housing. In FY18, we reserved $60,000 in matching funds to support extending the shelter year round.  We encountered operational and financial challenges with this plan and the shelter remains on the same calendar at this time.  However, we have continued our conversations with key partners (the Community Health Center of Burlington – the operator of the facility – and other potential funders), and are now confident of being able to offer some extended operations in calendar year 2019 if we carry-forward last year’s $60,000 appropriation.  Our focus now is to operate the shelter for as many additional months as possible in 2019 as a pilot effort, and to assess whether such extended operations result in positive outcomes for the users and City operations.  We will continue to provide the CDNR Committee updates on our progress on this initiative.

 

  • Expanded Funding of Senior Centers.  Both the Champlain Senior Center – now operated by the City’s Parks, Recreation and Waterfront Department – and the Heineberg Community Senior Center will experience reduced funding in FY19 from other funders.  The FY19 budget will give the City the ability to replace this recently lost funding in the upcoming year and to work with the senior centers to ensure long-term financial stability.  

 

  • Enhanced Funding of the Housing Trust Fund.  The FY19 budget again includes $175,000 of supplemental funding for the Housing Trust Fund to increase the City’s contribution to the equivalent of a one cent assessment of the Grand List. 

 

FY19 Budget Supports Continued Implementation of Sustainable Infrastructure Plan

The FY19 Budget includes continued investments in the City’s infrastructure at historically high levels.  Highlights of this investment include:

  • The funding necessary to complete summer 2018 rebuilding of large stretches of North Avenue, Colchester Avenue, Plattsburgh Avenue, and other roads.  Altogether, in 2018 we will approach 300 percent of the typical road paving investment.
  • Another fiscal year at nearly triple the historic level of investment in our sidewalks.
  • The building of two new Bike Path pause places and design work for additional investment in the southern three miles of the Bike Path in calendar year 2019.

 

This public infrastructure investment will result in an approximately two-cent increase in FY19 in the dedicated tax related to debt service payments.  This is consistent with the multi-year projected tax increases communicated in advance of the November 2016 bond vote supported by approximately three-quarters of Burlington voters.

 

Continued Investment in Water Infrastructure Enhancements

As in FY18, the FY19 enterprise fund budgets include enhanced capital investment in the City’s water, wastewater, and stormwater infrastructure.  The budget includes a combined 4.95 percent increase in the City’s water/wastewater/stormwater rates to continue addressing deferred capital needs, and to address revenue reductions the water and wastewater funds are receiving as a result of the long-standing but recently discovered billing errors.  The average age of the City’s water mains is 75 years – and a full quarter of our system is over 100 years old.  In 2017, Burlington piloted a water main relining program that is cheaper and causes less disturbance than excavating and replacing pipes. DPW applied lessons learned from that effort to complete substantially more work last summer, and will continue to do that work this summer.

 

FY19 Budget Continues Fourth Year of Flat Operating Taxes, While Debt + Retirement Tax Rise

The FY19 Budget includes an overall municipal tax rate increase of 4.16 percent.  Key information about this increase includes:

  • At the new rate of $0.8344, the total rate is just 4.35 percent higher than it was four years ago. 
  • No new revenue is being raised for general operating costs.  The total of the operating-related taxes remain set at a rate approximately 1 percent lower than the assessments four years ago.
  • Nearly two-thirds of the tax increase was driven by an increase in the voter-approved debt service tax.  As noted above, this increase is consistent with the projections supplied to voters prior to the November 2016 vote on the $27 million Sustainable Infrastructure Bond.
  • The remaining increase is the result of a 7.25 percent increase in the Retirement Tax, the first increase since FY15.  Some additional notes on this increase:          
    • This increase is driven in part by updated actuarial projections which have reallocated some of the City’s projected pension liability onto the general fund instead of enterprise funds.
    • The increase is also partially driven by the failure of the fund’s high assumed 8 percent rate of return, which has been difficult to meet in recent years (this policy is being reviewed by the Burlington Employee Retirement System).
    • The budget assumes that this year City taxpayers will pay 72 percent and employees will pay 28 percent of the annual actuarially determined contributions required to maintain the BERS, approximately the same percentages paid in the current fiscal year.  The actual percentages will be determined as a result of collective bargaining negotiations with the City’s unions, which are currently underway. The current 72/28 split represents substantial progress for taxpayers, since prior to the last round of retirement systems reforms when taxpayers were responsible for approximately 80 percent of costs.  This split is consistent with the way in which costs in FY18 were shared but has not been fully negotiated with public employees for FY19, as those contracts are in active negotiation.
    • Despite three years of level Retirement Tax payments and the achievement of employee risk-sharing and cost-sharing more consistent with national averages, the Administration remains concerned about the long-term BERS trends.  We anticipate continued discussions in FY19 about strengthening the system and controlling its cost impact on the municipal budget.

 

Conclusion: the FY19 Budget represents the continuation of the financial and programmatic progress we have forged together over the prior six years.  The FY19 budget coming before the City Council is very much in line with the significant progress we have made together over the last six years.  I again thank you for your help with the development of the FY19 budget and respectfully request your strong support for it on June 18, 2018.

 

Thank you.

Press Release Date: 
06/19/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE
May 29, 2018
Contact: Gene Richards, Director of Aviation, 802.343.9909
                 Katie Vane, Mayor’s Office, 802.734.0617

Moody’s Investors Service Upgrades Burlington International Airport Credit Rating to “Baa2”
Represents Highest Rating Since Prior to 2010 Financial Troubles; Moody’s Cites Airport’s Continued Improved Liquidity, Stability in Debt Service Coverage Ratios, and Airline Agreement
 

Burlington, VT – Mayor Miro Weinberger and Aviation Director Gene Richards today announced that Moody’s Investors Service has upgraded the Burlington International Airport credit rating to Baa2 from Baa3 (please see the complete Airport ratings table below), and revised the Airport’s credit outlook from positive to stable. This is the second credit rating upgrade the Airport has earned since 2014 and represents its highest rating since prior to the multiple downgrades of the Airport in 2010 due to revelations of serious financial mismanagement.

In its Credit Report, released on Tuesday, May 22, 2018, Moody’s stated that “the upgrade reflects continued improvement in liquidity and stability in debt service coverage, combined with a strengthened cost recovery framework following the adoption of a five-year airline agreement that is residual in nature and provides for a 1.5x DSCR and 200 days cash on hand.” DSCR is the ratio of net revenues available (operating net revenues less operating expenses) to pay for debt principal and interest. 

“This upgrade is great news for the Airport and another sign that the public’s support of our efforts to strengthen the City’s finances is continuing to yield results,” said Mayor Miro Weinberger. “Thank you to the Airport team and CAO’s office for the years of focused, hard work that have made this upgrade possible.”

“This upgrade reflects Moody’s confidence in our team’s ability to react to industry and regional changes, and to continue providing exceptional service to our traveling public,” said Aviation Director Gene Richards. “Moody’s recognizes the continuous growth in the Airport’s liquidity in the form of cash reserves, sustained efforts to improve financial stability, manageable cost per enplanement, signed five year agreements with the airlines, and our ability to achieve the Debt Coverage Score of 1.5x year after year. The credit for this significant accomplishment goes to the entire Burlington International Airport team, as well as the City of Burlington team of Rich Goodwin, Beth Anderson, and Mayor Miro Weinberger, for his personal involvement and commitment to strong airport finances. We are also very fortunate to have built strong relationships with our airline partners, who serve the region so well.”

The Airport has seen numerous positive trends in recent months, including:

  • The strongest first quarter (Jan-Mar 2018) number of passengers since 2008. 
  • A 19 percent increase in passengers in April 2018, which represents the single largest percentage growth of any month since 2005. 
  • Delta Air Lines has added new routes flying to New York (JFK) and American Airlines is starting new service to Chicago (ORD) in early June. The Airport is able to accommodate this increase in both larger and additional planes (capacity in airside) and customers within the Terminal (landside facilities).  
  • Level debt payments for the Airport’s debt service. The Airport it is not looking to take on any additional borrowings at this time.

Additional highlights from the Moody's Report include:
The May 22, 2018 Moody’s Rating Report noted that Burlington International Airport’s status as a regional economic center will sustain a solid level of air travel demand, which the Airport is well positioned to serve. Enplanements have stabilized and are now beginning to grow with the introduction of significant new air service in Fiscal Year 2018. The expectation of stable enplanements is made manageable by the Airport’s stable cost profile, level debt service, capacity in airside and landside facilities, and manageable planned capital investment.

Moody’s report notes that the Airport’s active management is committed to fiscal responsibility and maintaining the Airport’s strong finances. This contributes directly to the overall financial health and success of the Airport.

The Report attributed the credit outlook revision to the Airport’s core financial metrics, namely DSCRs and liquidity, and enplanements. According to the Report, “The airport is well positioned to sustain its credit profile over the next 12-18 months due to the cost recovery framework provided by the new airline agreement, growing air service, economic stability in the service area, and manageable cost per enplanement (CPE) and no new borrowing.”

Future actions that could lead to another cred rating upgrade include:

  • Sustained enplanement and air service growth
  • Net revenue DSCRs above 2.0x times on a sustained basis
  • Liquidity sustained above 600 days cash on hand
Moody's Ratings
Date Action Rating Action Outlook
5/22/2018 Upgraded Baa2 Revised Stable
3/17/2017 Affirmed Baa3 Revised Positive
12/11/2015 Affirmed Baa3 Affirmed Stable
11/12/2014 Upgraded Baa3 Affirmed Stable
1/15/2014 Affirmed Ba1 Revised Stable
11/19/2012 Affirmed Ba1 Affirmed Negative
1/6/2012 Affirmed Ba1 Affirmed Negative
10/13/2010 Downgraded Ba1 Affirmed Negative
5/13/2010 Downgraded Baa3 Revised Negative
11/28/2005 Affirmed Baa1 Affirmed Stable

 

*Please see the Moody’s Rating Report

# # #

Press Release Date: 
05/29/2018
City Department: 
Mayor's Office

FOR IMMEDIATE RELEASE

May 24, 2018
Contact:  Katie Vane
                  802.734.0617

 

U.S. Air Force Secretary Issues Letter Reaffirming F-35 Basing at Burlington International Airport
 

Burlington, VT – Today, Mayor Miro Weinberger released a letter from U.S. Air Force Secretary Dr. Heather Wilson written in response to the Mayor’s April 9, 2018 letter. The Mayor’s letter included the City Council’s March 26, 2018 resolution requesting the Secretary of the U.S. Air Force provide an alternative mission for the Vermont Air National Guard (VTANG) at the Burlington International Airport. This resolution was approved following a public vote in March 2018.

 

Secretary Wilson’s letter, which the Mayor’s Office received on May 23, 2018, responds to the central question posed by the Mayor, City Council, and the voting public: whether the Air Force could provide an alternative mission for the Vermont Air National Guard. Secretary Wilson writes: “We expect the first F-35 aircraft to arrive in Burlington in 2019. This decision was finalized in 2013 after a 48-month review which assessed 205 locations and concluded that the Burlington International Airport was the best Air National Guard option. If that decision were to be reversed, the Vermont Air National Guard would likely lose their flying mission upon the retirement of the F-16s. The Air Force is much smaller than it was at the end of the Cold War. We have fewer bases and fewer aircraft. As a result, some states no longer have flying missions for their National Guard and the competition to secure new missions is fierce.”

 

Mayor Weinberger issued the following statement in response to the letter:

 

“I welcome Secretary Wilson’s response to Burlington, which provides clarity in two important respects. First, it signals the United States Air Force’s continued commitment to its 2013 decision to base F-35s at the Burlington International Airport. Second, it provides a strong confirmation of what many of us have long thought: reversing the F-35 basing decision at this late date would likely lead to the end of the VTANG flying mission, jeopardizing hundreds of jobs and threatening the strength of our region’s economy. This clear, decisive communication should bring some measure of resolution of this issue to the community.”

 

Please see:

 

* Mayor’s April 9, 2018 letter to the Air Force Secretary

* Air Force Secretary’s May 23, 2018 letter to the Mayor

 

# # #

Press Release Date: 
05/24/2018
City Department: 
Mayor's Office

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