The Fitch Ratings has given Cobb County government its highest possible financial rating, AAA. That’s the 24th consecutive designation for Cobb, per a county release issued late Monday afternoon:
The Fitch Ratings analysts cited Cobb County’s history of conservative budgeting and proactive measures in the face of an uncertain economic future caused by the coronavirus pandemic.
“The county is well-positioned to withstand the current period of economic weakness due to its sound reserves and superior inherent budget flexibility,” the agency said in a news release.
“The fact that we had our AAA rating reaffirmed during the most challenging economic time in a dozen years shows the fiscal soundness of the county,” said Cobb County Commission Chairman Mike Boyce. “It is a tribute to our staff, the board, and our work with the community to make sure we continue to show diversity in our county’s economic base.”
Fitch pointed to the county’s reaction to the last recession as one of the reasons it has confidence Cobb County can weather whatever lies ahead.
What the AAA rating means above all is that when the county saves money on interest rates when needs to borrow—particularly the short-term loans it takes out to bridge from one fiscal year to another.
On Tuesday, the Cobb Board of Commissioners will be asked to approve in $65 million TANS—tax anticipation notes—to fund county government operations until it can collect property sales tax revenues in the fall.
Last week the county sent out delayed assessment notices, with bills due after the tax digest is established in July.
Here’s more from Fitch’s analysis. Other rating agencies are expected to follow suit and maintain Cobb’s AAA status.
Boyce has said the fiscal year 2021 budget he will propose this summer will keep the current millage rate.
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