County maintains AAA bond rating for 23rd consecutive year

Oakland County has maintained its AAA bond rating for a 23rd consecutive year.

Last week, Moody’s Investors Service reaffirmed the county’s AAA bond rating, awarding its highest credit score to the county for two Water Resources Commissioner (WRC) refunding bonds which will save ratepayers an estimated $5.2 million with lower interest rates over the life of the bonds.

The refunding bonds include the City of Pontiac Wastewater Treatment Facility Drainage District Drain ($39.1 million) and Oakland County Farmington Hills Water Supply System ($4.2 million) Refunding Bonds. The bond sale will take place April 28.

According to county officials, Moody’s cited the county’s effective response to the COVID-19 pandemic, budgetary excellence, and its strategic vision for the future as the rationale for reaffirming the bond rating.

“Throughout the pandemic, my administration and the other elected officials have leaned into the pandemic response to ensure we are supporting the critical needs of our residents, businesses, schools, communities, and nonprofit organizations so the county will emerge strong from COVID-19,” said Oakland County Executive Dave Coulter. “This AAA bond rating affirms that Oakland County is headed in the right direction.”

The bond rating serves as a sign of the county’s fiscal strength and its ability to meet financial commitments, including the repaying of bonds. The rating will allow the county to continue to finance bond issues at the best market rates possible.

As of March 2020, the county’s total pledged debt was around $615 million. Of that total, around $210 million was self-supporting 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.