County maintains AAA bond rating, shows fiscal strength
Oakland County has maintained its AAA bond rating for a 22nd consecutive year.
Last week, Oakland County Executive David Coulter, and his administrative team, visited Chicago to meet with Moody’s Investors Service and Standard and Poor’s for the county’s annual bond rating meeting. On Thursday, Standard and Poor’s assigned the highest-possible rating with a stable outlook, which serves as a sign of the county’s fiscal strength and its ability to meet financial commitments. The rating will enable the county to finance two bond issues at the best market rates possible.
“My administration is committed to balanced budgets, fiscal responsibility, and moving Oakland County forward together. That is what my team presented to S&P and it is great to now have their validation with the highest rating possible – AAA,” said Coulter. “This rating is positive news for the residents of the county because it allows us to cut the price tag of government.”
An Oakland County Building Authority Bond, totaling $18.5 million, will help finance significant upgrades to OAKWIN, the county’s aging public safety radio system. A second Evergreen Farmington Sewage Disposal System Bond, totaling $3.9 million, will help finance a Water Resources Commissioner project in Farmington Hills.
According to its online report, S&P said their rating reflects Oakland County’s “very strong management, with strong financial policies and practices.” They also acknowledged the recent change in administration and “continued
adherence to strong policies and comprehensive planning.”
Oakland County Treasurer Andy Meisner said the bond rating “saves taxpayers real money and shows the continued importance of fiscal responsibility.”
The county’s total pledged debt is around $615 million. Of that total, around $210 million is selfsupporting or paid directly by benefited municipalities. The county’s statutory limit on debt is $7.6 billion, which is 10 percent of current state equalized value.
For years, the administration of the late L. Brooks Patterson prided itself on maintaining the rating at its highest level. The county’s first AAA bond rating was issued in 1998.
Shortly after taking office in August, Coulter told The Oakland Press that the county’s bond rating was something he didn’t want to “mess up” and can be maintained by passing a “credible and realistic” budget, which totals $922 million for Fiscal Year 2020.
“It has been my top priority to keep this AAA hallmark of Oakland County’s economic prowess while leveraging our strengths and addressing our challenges,” he said. “As I said at the State of County, we can be fiscally responsible with the taxpayer’s money and forward-thinking. I brought my leadership team with me so S&P could hear our ambitious plans and commitment to fiscal discipline.”