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King George's bond ratings improve and county looks for ways to generate more revenue Date published: 7/6/2009
BY CATHY DYSON In the midst of tough economic times, King George County is getting higher marks for how it manages money. The county was one of 16 rural localities in the East--and the only one in Virginia--to get an improved bond rating recently from Standard & Poor's Rating Services in New York. The county's score improved from A-plus to AA, which represents excellent financial security, according to Standard & Poor's scale. The rating is like a consumer's credit score, said Donita Harper, King George's finance director. With a better score, the county can borrow money more easily and get lower interest rates on bonds. "That directly impacts our cost as we do business," said King George Supervisor Dale Sisson. An improved rating is unusual in this market, said Steve Johnson, a partner at Troutman Sanders in Richmond. His law firm does the paperwork for King George County's bonds. "It's obviously quite a positive from the county's perspective," he added. Bond ratings in other Virginia localities are staying the same or being downgraded, Johnson said. In March, Stafford County officials were told their county's rating may fall because there's less money in the reserve fund. Stafford tries to keep 10 percent of its operating budget in reserve, but the amount dipped to 8.48 percent as revenues dropped and officials used reserves to make up the difference. By contrast, King George has almost 60 percent of its operating budget--or $19 million--in a reserve fund, Standard & Poor's reported. "That's an extraordinarily good number," Johnson said. When asked why the reserve balance is so high, especially when the county imposed stringent spending guidelines this year, the county's finance director compared it to an individual's savings account. Consumers are advised to keep enough in savings to cover six months' worth of expenses, but Harper said having a year's worth is an even better idea. "We want to make sure if we lost all our revenue, we could cover our operating budget," Harper said. Plus, King George has money designated for future projects. Its current capital-improvement plan includes $114 million for parks, schools and equipment. Of that, almost $10 million is for projects deemed urgent or necessary in the next three years.
Date published: 7/6/2009
remembered that not all of the hundreds of millions dollars the
Navy spends at Dahlgren goes to KG. Hundreds of the
McMansions in Fredericksburg, Spotsy and Stafford are owned
by engineers employed at the base.
I hope KG doesn't become another Waldorf or even Fredericksburg for that matter. It would be nice to have a few conveniences (a Wal-Mart/Target, a sit-down restaurant or two and a Lowe's/Home Depot) close by but please do not build up our rural community. We live here because we like it that way!
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