Posted on 01/12/17
January 12, 2017, Monroe, NC – Fitch Ratings (Fitch), has affirmed Union County’s $234 million general obligation (GO) debt and Issuer Default Rating (IDR) at AAA and $56.6 million lease obligation bonds (LOBs) at AA. The AAA rating is the best rating available to municipal debt issuers. The outlook on all the ratings is stable.
The AAA IDR and GO rating reflects the County's strong growth prospects, ample reserves, and broad budgetary tools. The rating on the LOBs is one notch below the IDR, reflecting appropriation risk. Key rating factors Fitch identified to establish Union County’s ratings affirmation include:
“The affirmation by Fitch is due to the hard work and strong fiscal planning by staff and the Board of Commissioners,” said County Manager Cindy Coto.
The county's 2017 proposed budget represents a 2 percent ($5.7 million) increase over the prior adopted budget. The budget includes a 1 cent per $100 of valuation reduction in the tax rate. The major drivers of the budget include a wage increase ($3 million) and an increase in benefit costs ($164,000). Fitch expects fiscal 2017 performance to be consistent with past performance given the county's history of conservative budgeting and maintenance of healthy reserves in accordance with its 20 percent policy requirement.
A complete copy of Fitch’s release can be viewed at: Fitch's Release.
Union County Government Center
500 North Main Street, Monroe, NC 28112
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