Prince William County, Virginia…. On May 3, 2010, Moody’s announced that it upgraded approximately $1 billion in Prince William County General Obligation (GO) tax and lease backed debt to AAA status. Prince William County was upgraded from Aa1 to AAA on all of its outstanding GO debt and Moody’s expects to continue to award this rating on future GO bond issuances. Fitch announced that it removed the “Negative Watch” from its AAA rating it awarded to the County in 2004. This recent announcement places Prince William County in the highest category of ratings with two AAA status ratings. Only seven other municipalities in Virginia have been awarded AAA bond ratings from both agencies.
This extremely high credit rating is the direct result of the Board of County Supervisors strong financial management policies and practices and the strong stewardship of taxpayer resources demonstrated by the Board and staff. Over several decades, the Board has maintained stringent control of the County’s annual and five year budgets and the Capital Improvement Program resulting in balanced five-year Budgets and six-year Capital Improvement Programs, strong revenue forecasting, growing reserves and services that are affordable for County residents. The Board’s focus on achieving its strategic goals, focusing on the highest risk services and its long-term, financially sound commitment to improving the quality of life has helped to achieve this bond rating.
“This validates the efforts of this Board of County Supervisors and the management staff we have put in place to run County Government,” said Corey Stewart, Prince William Board of County Supervisors Chairman. “In these challenging economic times, we have lowered our crime rates; we have provided our citizens with the services that are needed and expected with less money; we have added monies to our reserves; we have lowered the average tax bills from where they were in 2007; and we now have been rewarded with a bond rating that most jurisdictions long for, but never attain.”
The Board’s strong emphasis on improving the County’s economy through policy and financial decisions has effectively generated and attracted new businesses to the County. Consequently the County benefits from a steadily growing and diversifying local economy. The County’s improving credit rating is also a reflection of its strong financial management program that has substantially boosted reserves even in an environment of increasing service demands and a moderate debt burden with manageable future capital needs. The County is evolving rapidly with strong residential wealth, increased income measures, stable property values, and quality new commercial development even in this weakened economic cycle.
“If this new rating had been in place when the County’s existing debt was issued, the overall debt service costs would have been approximately $44 million less than they are now,” said Melissa S. Peacor, County Executive. “The leadership of our Board of County Supervisors to stand by our sound financial leadership policies in good times and bad has placed our community in good stead for the future.”