WEST CHESTER — With the announcement this week of the reaffirmation of all three Triple-A bond ratings, Chester County marks 10 years as a government entity that has earned – and maintained – the highest possible rating status. It is the only county in Pennsylvania that holds the three Triple-A rating distinctions, and is one of just 43 counties nationwide.
Favorable market conditions combined with the reaffirmation of top bond ratings have led the Chester County Commissioners to approve an ordinance authorizing a bond issue to fund the county’s five-year Capital Investment Program.
In his presentation to the Commissioners at this week’s Sunshine Meeting, Glen Williard, Managing Director of Public Financial Management in Harrisburg, noted that the reaffirmed Triple-A rating status by all three agencies meant that Chester County’s financing would be at rates lower than any other municipality in the state.
The continued Triple-A ratings from all three agencies reflect Chester County’s success in establishing and maintaining its strategic plan priority of smart financial management.
“This tenth consecutive award of Triple-A ratings comes through hard work, controlling expenses and continually improving our efficiencies,”Commissioners’ Chair Terence Farrell said. “Our strategic plan keeps us focused, not only on how to remain fiscally responsible, but on what our citizens want.”
Chester County’s five-year Capital Investment Program reflects those services and programs identified as important to Chester County citizens – from public safety projects such as the public safety training campus’ police firing range, to open space preservation and community revitalization.
“Our Triple-A status allows us to produce the lowest cost of debt needed to fund these projects,” noted Commissioner Kathi Cozzone. “It’s important to remember that we have maintained our Triple-A status despite an economic crisis, rising healthcare costs and the vagaries of the financial markets.”
“Chester County’s priority on smart financial management continues to pay off every time the ratings agencies review our status,”Commissioner Michelle Kichline added. “It is worth noting that, because of our sound financial practices and healthy reserves, our top ratings are not jeopardized by factors beyond our control, like the state budget crisis.”
“The approximate savings we achieve by having the three Triple-A ratings, versus lower ratings, is estimated to be more than $1 million during the length of the bond issue,” Chester County Chief Operating Officer Mark Rupsis said.
In re-confirming its Aaa award to Chester County, Moody’s Investors Service noted that Chester County’s tax base will remain one of the strongest and most affluent in the region, due to a favorable location and ongoing development.
Standard & Poor’s highlighted the strength of Chester County’s budgetary flexibility and its management policies, including quarterly reports to elected officials and the voting public on budgeted numbers as compared to actual results.
Fitch Ratings reported Chester County continues to maintain solid reserve levels through conservative budgeting practices and has sufficient cash flow to offset any delays in state revenue due to the current Commonwealth budget impasse.
The pricing and sale of bonds will take place later in February. Should it go ahead, the deal size is estimated to be $71 million.
