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U.S. Local Governments Credit Brief: Michigan Counties And Municipalities Means And Medians

Overview

Michigan counties and municipalities (or local governments [LGs]) have maintained stable credit quality during the past year as the result of stable and growing revenues, pandemic-related federal stimulus funds, and conservative budgeting practices. Some macro and local credit factors such as the winding down of federal stimulus funds, rising costs, and deferred capital projects, could present budgetary challenges in the next few years. S&P Global Ratings believes that LGs might increasingly turn to voters for a special-operating levy or a Headlee Override to offset rising costs. However, current reserve and liquidity positions, which for many LGs are at an all-time high, provide sufficient cushion and time to respond to these challenges.

We maintain ratings on 245 municipalities and 53 counties in Michigan. Eight ratings, consisting of seven municipalities and one county, have negative outlooks, while the rating on one municipality has a positive outlook. Since Jan. 1, 2024, we have taken positive rating actions on seven municipalities, including Detroit (BBB/Stable general obligation rating), and three counties, largely due to improved financial performance or the implementation of management strategies, which enhanced the issuers' reserves and long-term liabilities profiles. We have taken negative rating actions on six municipalities and two counties, largely fueled by deteriorating financial positions especially in LGs with below-average economies and management practices. We took negative rating actions on four municipalities due to the application of our new criteria, "Methodology For Rating U.S. Governments," published Sept. 9, 2024.

What We Are Watching In 2025 And Beyond

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Chart 1

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Chart 2

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Table 1

Michigan municipalities: Medians
AAA AA+ AA AA- A+ A A- BBB+ and below*
Median county GCP (%) of the U.S. 135.15 99.10 87.30 72.00 68.85 49.40 62.30 79.65
Median county PCPI (%) of the U.S. 129.65 102.30 93.70 77.50 74.20 79.90 71.80 75.00
Median local HHEBI (%) of the U.S. 158.20 129.35 99.20 91.70 79.15 76.85 72.25 75.35
Median local PCEBI (%) of the U.S. 164.30 126.50 103.20 91.40 74.70 81.40 70.75 75.85
Median three-year performance average (%) of revenues 1.10 6.50 6.15 6.30 3.75 2.30 7.00 8.50
Median general fund balance (%) of revenues 50.75 66.30 58.00 58.65 37.05 52.20 47.80 -0.60
Median fund balance plus non-general fund (%) of revenues 49.75 60.50 58.60 56.75 41.30 47.00 47.80 -0.60
Median debt service (%) of revenues 4.10 4.10 3.85 4.50 4.00 6.10 12.75 13.60
Median net direct debt per capita 850 492 626 749 734 1,172 621 2,787
Median pension contribution (%) of revenues 8.00 5.05 7.25 8.65 12.20 5.20 17.55 5.95
Median net pension liablity per capita 568 179 245 403 1,117 571 53 494
*While we are providing medians for BBB+ and lower ratings, such ratings have additional qualitative factors that are supporting them. GCP--Gross county product. PCPI--Percapita personal income. HHEBI--Household effective buying income. PCEBI--Per capita effective buying income.

Table 2

Michigan counties: Medians
AAA AA+ AA AA- A+
Median County GCP (%) of the U.S. 112.20 72.70 56.00 54.40 49.90
Median County PCPI (%) of the U.S. 109.60 91.10 78.80 69.20 68.95
Median local HHEBI (%) of the U.S. 112.00 99.70 89.85 80.30 78.60
Median local PCEBI (%) of the U.S. 120.60 102.40 87.25 77.00 77.10
Median three-year performance average (%) of revenues 4.80 6.60 2.25 6.20 0.00
Median general fund balance (%) of revenues 43.20 52.80 29.95 41.30 9.80
Median fund balance plus non-general fund (%) of revenues 44.50 94.80 64.40 65.10 52.10
Median debt service (%) of revenues 1.50 3.30 3.30 4.40 3.60
Median net direct debt per capita 338,253 75,066 28,274 15,801 32,051
Median pension contribution (%) of revenues 3.10 5.80 6.20 5.40 5.85
Median net pension liablity per capita 195 30 367 347 262
GCP--Gross county product. PCPI--Percapita personal income. HHEBI--Household effective buying income. PCEBI--Per capita effective buying income.

Table 3

Michigan municipalities: Rating list
This list was prepared by individuals on behalf of the U.S. public finance group of S&P Global Ratings and is current as of Feb. 12, 2025. For the most up to date, accurate, and complete information on any credit ratings referenced in the list, please visit www.standardandpoors.com
Entity Rating Outlook
Ada Township AA+ Stable
Adams Township AA- Stable
Adrian A+ Stable
Albion A+ Stable
Allegan AA- Stable
Allen Park City A+ Stable
Alpena AA- Stable
Alpena Township AA- Negative
Alpine Township AA Stable
Ann Arbor AAA Stable
Auburn Hills AA+ Stable
Augusta Charter Township AA- Stable
Bath Charter Township AA Stable
Battle Creek AA- Stable
Bay City A+ Stable
Bear Creek Township AA Stable
Benton Charter Township A+ Stable
Birch Run Township AA- Stable
Birch Run Village A Stable
Birmingham AAA Stable
Blackman Charter Township AA- Stable
Blissfield Village A+ Stable
Bloomfield Hills AAA Stable
Boyne City AA- Stable
Bridgman A+ Stable
Brighton AA Stable
Brighton Charter Township AA+ Stable
Brownstown Charter Township AA- Stable
Bruce Township AA+ Stable
Buchanan A Stable
Cannon Township AA+ Stable
Canton Charter Township AA Stable
Cascade Charter Township AAA Stable
Casco Township AA- Stable
Charlevoix AA- Stable
Charlotte A+ Stable
Charter Township of Bloomfield AAA Stable
Charter Township of Emmett A+ Stable
Charter Township of Grand Haven AA Stable
Charter Township of Texas AA+ Stable
Chelsea AA Stable
Chesaning Village BBB+ Stable
Chesterfield Charter Township AA Stable
City of Dexter AA Stable
City of Jonesville A+ Stable
City of Lansing A+ Stable
City of Morenci A+ Stable
City of St. Johns AA- Stable
Clawson AA- Stable
Clay Township AA Stable
Clinton Charter Township AA+ Stable
Coldwater AA- Stable
Columbia Charter Township A+ Stable
Commerce Charter Township AA+ Stable
Coopersville AA- Stable
Dearborn Heights A+ Stable
Delhi Charter Township AA Stable
Delta Charter Township AA+ Stable
Detroit BBB Stable
DeWitt AA+ Stable
Dewitt Charter Township AA Stable
Dowagiac A Stable
Durand A+ Stable
East China Chart Township A Stable
East Grand Rapids AA+ Stable
East Lansing AA+ Stable
East Tawas AA- Stable
Eaton Rapids A+ Stable
Ecorse BB- Stable
Elk Township A Stable
Elba Township AA Stable
Elberta BBB Stable
Elk Rapids Village AA- Stable
Elmwood Charter Township AA Stable
Escanaba AA- Stable
Farmington AA Stable
Farmington Hills AAA Stable
Fenton AA- Stable
Ferndale City AA Stable
Flat Rock A+ Stable
Fowlerville Village A+ Stable
Frankenmuth AA Stable
Franklin Village AA Negative
Fremont A Stable
Fruitport Charter Township (Muskegon County) AA- Stable
Garden City A+ Stable
Gaylord AA- Stable
Genoa Charter Township AA+ Stable
Gladstone A- Negative
Glen Arbor Township AA+ Stable
Grand Blanc AA- Stable
Grand Blanc Charter Township AA- Stable
Grand Haven AA Stable
Grand Ledge AA- Stable
Grand Rapids AA Stable
Grattan Township AA Stable
Green Lake Township AA- Stable
Grosse Ile Township Wayne County AA Stable
Grosse Pointe AAA Stable
Grosse Pointe Farms AAA Stable
Grosse Pointe Park AA Stable
Grosse Pointe Woods AA+ Stable
Hamburg Township AA+ Stable
Hampton Township AA- Stable
Hancock A Stable
Hastings AA- Stable
Hazel Park City A+ Stable
Henrietta Township AA- Stable
Highland Charter Township AA Stable
Hillsdale AA- Stable
Holland AA Stable
Holly Village A+ Stable
Houghton AA- Stable
Howell AA- Negative
Hudsonville AA- Stable
Huntington Woods AA+ Stable
Imlay City A+ Stable
Independence Charter Township AA+ Stable
Inkster BB Stable
Iron Mountain A+ Stable
Ishpeming A Stable
Jackson A+ Stable
Kalamazoo AA- Stable
Kalamazoo Charter Township AA- Stable
Lake Charter Township AA- Stable
Lake Orion Village AA- Stable
Lansing Charter Township BBB Stable
Lapeer AA- Stable
Lathrup Village AA- Stable
Leland Township AA Stable
Lincoln Charter Township AA Stable
Lincoln Park BBB Positive
Linden AA- Stable
Littlefield Township A Stable
Livonia AA Stable
Long Lake Township AA Stable
Lowell AA- Stable
Lyon Charter Township AA+ Stable
Mackinac Island AA- Stable
Macomb Township AA+ Stable
Madison Charter Township A+ Stable
Madison Heights AA Stable
Manistee A+ Stable
Marquette AA Stable
Marshall AA- Stable
Marysville AA- Stable
Mason AA- Stable
Menominee A+ Stable
Meridian Chart Township AA+ Stable
Midland AA- Stable
Milford Charter Township AA+ Stable
Milford Village AA+ Stable
Monitor Charter Township AA- Stable
Monroe A+ Stable
Mount Clemens AA- Stable
Mundy Charter Township AA- Stable
Muskegon Charter Township A+ Stable
Muskegon City A+ Stable
Negaunee A+ Stable
New Baltimore AA- Stable
New Buffalo AA+ Stable
New Buffalo Township AA+ Stable
Northfield Township AA- Negative
Northville Charter Township AAA Stable
Norton Shores AA- Stable
Norway A- Negative
Novi AAA Stable
Oak Park A+ Stable
Orchard Lake Village AA+ Stable
Orion Charter Township AA Stable
Owosso A+ Stable
Oxford Charter Township AA+ Stable
Oxford Village AA- Stable
Parma Village A+ Stable
Paw Paw Township A+ Stable
Peninsula Township AA+ Stable
Pennfield Charter Township AA- Stable
Pentwater Village AA- Stable
Pere Marquette Charter Township AA Stable
Petoskey AA Stable
Plainfield Charter Township AA Stable
Plainwell A Stable
Pleasant Ridge AA Stable
Plymouth AA+ Stable
Plymouth Charter Township AA+ Stable
Port Huron A+ Stable
Portage AA+ Stable
Portland A+ Stable
Redford Charter Township A+ Stable
Riverview A+ Stable
Rochester AAA Stable
Rochester Hills AAA Stable
Rockwood A+ Stable
Rogers City A Stable
Romeo Village AA- Stable
Romulus AA- Stable
Roosevelt Park City A+ Stable
Roseville A+ Stable
Ross Township AA Stable
Royal Oak AA Stable
Saginaw Charter Township AA Stable
Saint Clair Shores AA- Stable
Saline AA+ Stable
Saugatuck AA Stable
Sault Ste Marie A+ Stable
Scio Township AA Stable
Shelby Charter Township AA+ Stable
South Haven AA Stable
South Lyon AA+ Stable
Southfield AA Stable
Southgate A+ Stable
South Haven Charter Township AA- Stable
Sparta Village AA Stable
Spring Arbor Township AA- Stable
Spring Lake Township AA Stable
Springfield Charter Township AAA Stable
St Ignace A Stable
St Joseph AA Stable
St. Joseph Charter Township AA Stable
Sterling Heights AA Stable
Sturgis A+ Stable
Summit Township A+ Stable
Sumpter Township AA- Stable
Superior Charter Township AA Stable
Swartz Creek AA- Stable
Taylor A+ Stable
Tecumseh AA Stable
Township of Ray AA- Stable
Troy AAA Stable
Van Buren Charter Township AA Stable
Vassar City A Stable
Village of Cassopolis A Negative
Village of Grosse Pointe Shores AAA Stable
Walker AA+ Stable
Warren AA Stable
Washington Charter Township AA+ Stable
Waterford Charter Township AA Stable
Wayland A+ Stable
West Bloomfield Charter Township AAA Stable
Westland A+ Stable
White Lake Charter Township AA+ Stable
Woodhaven AA Stable
Wyandotte AA- Stable
Ypsilanti A+ Stable
Ypsilanti Charter Township AA- Stable

Table 4

Michigan counties: Rating list
This list was prepared by individuals on behalf of the U.S. public finance group of S&P Global Ratings and is current as of Feb. 12, 2025. For the most up to date, accurate, and complete information on any credit ratings referenced in the list, please visit www.standardandpoors.com
Entity Rating Outlook
Allegan County AA Stable
Alpena County AA- Stable
Antrim County AA+ Stable
Arenac County A+ Stable
Barry County AA Stable
Bay County AA- Stable
Berrien County AA Stable
Branch County AA- Stable
Calhoun County AA Stable
Cass County AA Stable
Cheboygan County AA+ Stable
Chippewa County AA- Stable
Clare County AA- Stable
Clinton County AA+ Stable
Crawford County AA- Stable
Delta County AA- Stable
Eaton County AA Stable
Genesee County A+ Stable
Gladwin County AA- Stable
Grand Traverse County AA+ Stable
Gratiot County AA Stable
Hillsdale County A+ Stable
Huron County AA- Stable
Ingham County AA Negative
Ionia County AA- Stable
Iron County AA- Stable
Isabella County AA- Stable
Jackson County AA- Stable
Kalamazoo County AA+ Stable
Kalkaska County AA- Stable
Kent County AAA Stable
Lapeer County AA Stable
Livingston County AA+ Stable
Mackinac County AA Stable
Macomb County AA+ Stable
Manistee County AA- Stable
Marquette County AA Stable
Midland County AA Stable
Monroe County AA Stable
Muskegon County AA Stable
Newaygo County AA- Stable
Oakland County AAA Stable
Ogemaw County A+ Stable
Saginaw County AA- Stable
Sanilac County AA- Stable
Shiawassee County A+ Stable
St. Joseph County AA- Stable
St. Clair County AA Stable
Tuscola County AA- Stable
Van Buren County AA Stable
Washtenaw County AAA Stable
Wayne Charter County A+ Stable
Wexford County AA- Stable

This report does not constitute a rating action.

Primary Credit Analyst:Diana Cooke, Chicago +1 3122337052;
diana.cooke@spglobal.com
Secondary Contact:John Sauter, Chicago + 1 (312) 233 7027;
john.sauter@spglobal.com
Research Contributor:Shripal Nahar, CRISIL Global Analytical Center, an S&P affiliate, Mumbai

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