On the heels of the largest property tax rate reduction in county history last month, the Maricopa County Board of Supervisors received more good financial news. Both Moody’s and FitchRatings national bond rating agencies bestowed upgrades to Maricopa County’s bond ratings. In fact, FitchRatings assigned Maricopa County the highest possible ‘AAA’ rating.
In addition to an expanding economy, Moody’s pointed out several key factors in assigning its upgrade to the county, including the county’s low debt burden and continued sound financial management.
County leadership has played a pivotal role in this rating upgrade. The Board of Supervisors and key staff have significant tenure in county operations and have won countless national awards. “We’ve worked long and hard to ensure a solid financial balance sheet through conservative budgetary policies,” stated Fulton Brock, Chairman of the Maricopa County Board of Supervisors. “Our commitment to fiscal responsibility is one of discipline,” said Brock.
“This is a historical moment for Maricopa County. It is the first time we have achieved an AAA ratings and it confirms everything we have been striving towards,” noted Mary Rose Wilcox, Maricopa County Board of Supervisors. “As Supervisors, we know the challenge of meeting a growing demand for services. But this rating ensures that we’re doing it well and can continue to do it in the future,” said Wilcox.
This rating benefits taxpayers in several fashions. The higher rating allows county bonds to be issued with lower insurance premiums, as well as at lower rates. It also increases the county’s liquidity by eliminating a debt service reserve requirement. Fundamentally, more can be done with fewer tax dollars.
“In a county growing so fast, this rating allows the county to respond faster to the demand for services at much lower costs to taxpayers,” said Brock.
The Arizona Republic ran a front page article about the bond rating in the June 7, 2007 Valley and State section:
The stronger bond rating signals the county's financial stability, a tremendous turnaround from a decade ago, and, ultimately, translates into a savings for taxpayers in Maricopa County.