After Cobb commissioners approved taking out $64 million in short-term loans, chairman Mike Boyce announced this week that the county government has maintained its AAA bond rating for a 23rd consecutive year.
That’s the highest financial rating possible issued by Moody’s Investor’s Service and Fitch Ratings. According to a county release, Moody’s upgraded its financial outlook for Cobb from “negative” to “stable,” citing last year’s budget vote for its change:
“Following a tax rate increase in fiscal 2018, the county reported a sizable surplus, strengthening reserves to a sound level,” the report states. “The county’s debt and pension burdens are manageable and fixed costs are low.”
The ratings allow the county to save money when borrowing, such as it has just done. The Cobb government fiscal year ends on Sept. 30, but property taxes are not collected until later in the fall.
In the meantime, the county borrows against property tax collections with the short-term loans, called TANs (tax anticipation notes) to fund government operations. The loans are repaid with those tax revenues.
Boyce said in a statement that “I’m especially grateful for [the rating agencies’] patience as we worked to address various fiscal issues last year and the ratings reflected that work.”
He also thanked Cobb taxpayers who supported his millage increase in 2018 (opposed by East Cobb commissioners Bob Ott and JoAnn Birrell), saying that “it has provided a sound foundation for the county to continue to provide the high quality of services people in Cobb County have come to expect from their government.”
Boyce will formally present his fiscal year 2020 budget next month.
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