JCC Gets Higher Bond Rating

By WY Daily Staff Monday, October 11, 2010

James City County announced last week that the second of three national bond-rating agencies has upgraded the county’s bond rating to AAA, the highest level attainable.

Standard and Poor’s (S&P) Rating Service increased the county’s bond rating, which allowed the county to refinance older general obligation bonds at a lower interest rate through a new bond sale.

The new bond proceeds will refinance the outstanding bonds used to build Jamestown High School and the James City County Library. The move will save the county $360,000 over the course of the next five years.

S&P’s estimate now joins that of Fitch Ratings, which last year rated the county as AAA. Moody’s still holds the county at their Aa1 rating.

S&P based their upgrade on the county's ongoing economic development and diversification and maintenance of very strong finances, according to a county press release.

According to S&P, the bond rating reflects the county’s deep and diverse local economy; a substantial property tax base with very strong wealth and income indicators; consistently strong financial position and management policies; a moderate debt burden and a manageable capital program with a sizeable pay-as-you-go component.

When supervisors met in June to hear from their bond advisors and staff on effects of the upcoming $30 million stormwater bond referendum for November, though, advisors cautioned that the county is above its target for debt service to revenue ratio. That ratio is over target from 2010 through 2016, and rating agencies will likely look at those numbers in the future.

Increasing taxes by 2.25 cents if the referendum passes will likely help ease this problem, advisors said (read the previous story here).