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The nation’s two leading credit rating agencies this week gave Franklin County’s bonds a blue-chip grade, Board President Mary Jo Kilroy said today.
Moody’s and Standard and Poors each rated Franklin County’s tax-exempt debt ‘Triple A,’ its highest rating.
Franklin County is one of only a handful in the nation, and the only county in Ohio to earn the so-called “double-Triple A” rating. Continuation of the ‘Triple A’ rating puts Franklin County’s economy and financial management in the company of similarly ranked governments such as Fairfax County, Virginia; King County, Washington; Palm Beach, Florida; and Dallas County, Texas.
“A Triple A bond rating is very important to local governments. It means that taxpayers will pay the lowest borrowing costs possible because the county is considered to be the safest investment available in the market. ‘Triple A’ bonds will save taxpayers money,” said Commissioner Kilroy.
“Essentially, it means institutional portfolio managers want to invest in Franklin County,” she added.
Franklin County’s large and diverse local economy, healthy financial position strengthened by a decision made by Commissioners earlier this summer to continue a 6.75 percent sales tax, and a manageable debt burden contributed to the rating decision, according to analysts, who noted, “With improved economic conditions and the stabilizing effect on major revenue streams, coupled with the increased sales tax rate, Moody's expects the county's financial position to improve.”
Commissioner Paula Brooks said: “The action Commissioner Kilroy and I took in July to balance our budget and ensure financial stability has yielded this “platinum” credit rating. The ratings, along with the objective analysis of the county’s financial management by the two agencies, are direct proof that continuing the sales tax was necessary for our fiscal security.”
The new rating will be employed quickly; on October 11, 2005, $42 million in Various Purpose and Refunding Limited Tax General Obligation Bonds will go to market. These bonds will finance road improvements, purchase the building housing Franklin County Children’s Services, and to refinance 1996 and 1997 bonds to take advantage of lower interest rates. The sale will be handled by public finance professional Megan Browning of Seasongood & Mayer.
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