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For Immediate
Release: 11/3/2009
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Leggett Hails County’s Triple-A Bond Rating in Troubled Economic Times
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County Executive Ike Leggett today announced that Montgomery County has maintained its Triple-A bond rating from three Wall Street bond rating agencies, just a month after Leggett and other County officials met with the agencies to present the latest information on the County’s fiscal situation and describe actions taken by the County to weather the current economic downturn.
Fitch, Moody’s, and Standard & Poor’s all affirmed the “AAA” rating – the highest achievable -- for the County. They all termed the outlook for Montgomery County as “stable.”
The Triple-A bond rating enables Montgomery County to sell long-term bonds at the most favorable rates, saving County taxpayers millions of dollars over the life of the bonds. The rating also serves as a benchmark for numerous other financial transactions, ensuring the lowest possible costs in those areas as well.
“The County has demonstrated prudent fiscal management through strong financial planning and a commitment to reducing growth in out-year budgets,” wrote Fitch. “The fiscal 2010 budget was balanced with a combination of revenue enhancements and expenditure reductions, which included successful labor negotiations on wages and the elimination of roughly 400 positions.”
“Our ability to maintain our coveted Triple-A rating affirms my approach to reducing unsustainable increases in County spending, while investing in making government more effective and creating opportunities for the growth of good jobs in the future,” said Leggett.
The current year’s operating budget increase is the lowest in 18 years – an actual decrease in spending over the previous year.
Over the past three years, Leggett has closed budget shortfalls totaling $1.2 billion, while protecting critical areas such as schools, public safety, and help for the most vulnerable.
“Hard choices remain ahead,” said Leggett, who last week initiated a savings plan to cut $30 million more from the current year’s budget to begin the ongoing process to eliminate a projected $370 million budget gap for the fiscal year that begins July 1, 2010.
“Montgomery County will weather this downturn and, together, we will work to make sure we emerge from the downturn in a strong position to build a better future.”
“The renewal of the County’s Triple-A bond rating affirms that Montgomery County is prudent in spending tax dollars,” said Council President Phil Andrews. “The AAA rating will continue to save taxpayers money by reducing borrowing costs.”
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Release ID: 09-436
Media Contact: Patrick Lacefield 240-777-6528
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