Montgomery
County learned on Oct. 28 that all three bond rating agencies—Standard & Poor’s,
Fitch and Moody’s—reconfirmed that the it has retained its AAA bond rating.
County
Council President Nancy Navarro, Council Vice President Craig Rice and County
Executive Isiah Leggett recently traveled to New York City to meet with
representatives of the bond rating agencies and explain steps the County has
taken to maintain its financial health during the Great Recession of recent
years and as the nation has begun to recover.
The
AAA bond rating allows Montgomery County to issue bonds for its capital
borrowing at the most favorable rates, saving County taxpayers millions of
dollars over the life of the bonds. The County's pending issuance will
refinance $295 million of bond anticipation notes and $27.7 million of
long-term debt.
Montgomery
County is only one of 38 counties (out of 3,140) in the nation to receive a AAA
rating from all three rating agencies.
Council
President Navarro, who has chaired the Council’s Government Operations and
Fiscal Policy Committee since 2010, said the following after learning the AAA
bond rating was confirmed:
“During
the Great Recession, the Council took extraordinary steps to strengthen
Montgomery County’s fiscal health. Starting in 2010, the Council approved a
balanced six-year fiscal plan that ensures the County develops a long-term
strategic approach to budgeting. The Council also made structural changes that
have enabled Montgomery County to bounce back faster than most jurisdictions
nationwide.
“This decision by the rating agencies is a
reflection of the hard work of this Council and the County Executive. During
the most challenging economic times, we developed a proactive strategy to put
our fiscal house in order for the future.
“The
land-use decisions the Council has made over the past few years—to invest in
smart-growth opportunities and encourage redevelopment in all corners of the
County—will create a strong tax base for years to come.
“Since
I joined the Council, we have closed a cumulative $2.7 billion budget gap,
slowed the rate of growth in expenditures and put our County on a sustainable
fiscal path. As our economic recovery continues, this decision today by the
rating agencies demonstrates that Montgomery County is moving in the right
direction.”
