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Upgraded bond ranking positions Cabarrus to save lots of thousands and thousands


May 12, 2022

CABARRUS COUNTY, N.C. (WBTV) – From Cabarrus County: Cabarrus County Authorities earned the excellence of a triple-A ranking by Fitch Rankings and Moody’s Investor’s Service—two of three nationwide bond ranking companies. That is the primary time in historical past the County achieved triple-A standing.

The ranking positions the County—and in flip taxpayers—to save lots of thousands and thousands in curiosity over the subsequent decade.

The triple-A ranking is the best accessible. Based on the North Carolina State Treasurer’s Workplace, solely 10 different counties within the state have earned the excellence.

Cabarrus additionally maintained its AA+ ranking with S&P International Rankings.

Based on the College of North Carolina Faculty of Authorities, when a  authorities company desires to finance tasks—normally one-time, large-scale capital (constructing) tasks—it could tackle debt. Practically all this debt will likely be within the type of bonds which are assured by the company’s belongings or property taxes. To safe the bonds, the company should publicly market the debt it plans to tackle by way of funding bankers.

Bond scores straight have an effect on the rates of interest charged for the quantity owed and the quantity due on that debt.

“By upgrading the County to triple-A, Fitch and Moody’s present the general public and potential buyers that Cabarrus practices conservative budgeting, develops complete multi-year monetary plans and has sturdy governance that comes from management and insurance policies,” mentioned Board of Commissioners Chair Steve Morris. “These larger bond scores will lead to decrease rates of interest for the County, saving taxpayers cash and enabling extra investments in vital capital tasks.”

The standing improve adopted an April assembly between County management and bond ranking specialists. The assembly assessed the County’s:

  • Financial well being and stability
  • Operational and monetary administration practices
  • Financial growth achievements

The companies launched the scores on Could 6 with the next notes:

Moody’s Investor’s Providers: “The improve to AAA normal obligation limitless tax (GOULT) ranking displays the County’s ongoing tax base development and long-term pattern of fiscal stability evidenced by the upkeep of sturdy reserve ranges and conservative budgeting practices. The ranking additionally incorporates the County’s above-average earnings and wealth metrics and manageable long-term liabilities.”

Fitch Rankings: “The County’s mixed total debt and internet pension liabilities are low as a proportion of residents’ private earnings and are anticipated to stay low because the useful resource base grows. The legal responsibility burden is primarily pushed by direct debt, which amortizes at a fast tempo. The County’s superior inherent price range flexibility, and ample normal fund stability, place it to comfortably handle by way of financial downturns with out diminishing its total monetary flexibility.”

S&P International Rankings: “The ‘AA+’ long-term ranking on Cabarrus County additional displays our view of: sturdy pattern of a rising financial system, with entry to a broad and various metropolitan statistical space (MSA); conservative administration practices, supported by a really sturdy institutional framework rating; traditionally steady efficiency with very sturdy fund stability place; and excessive however at the moment manageable carrying prices with long-term capital planning and restricted pension pressures.”

In current months, commissioners and employees have had a number of public discussions about capital wants, debt, phrases of debt, refinancing and the bond ranking course of.

With the brand new bond scores in place, the County will tackle $103 million in mounted debt to handle capital tasks in its five-year monetary plan. This consists of building of the courthouse (on behalf of the state) and the brand new Roberta Street Center Faculty. The general public sale of this debt is scheduled to happen on Could 18.

Residents can be taught extra concerning the County’s budgeting and monetary processes by taking part within the upcoming class: Authorities 101: FY23 Finances Breakdown, scheduled for Could 31, from 9 a.m. to 2:30 p.m. The category informs residents forward of a public listening to on the FY23 price range. To register, e-mail outreach@cabarruscounty.us or name 704-920-2266.

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