By 1808Delaware
Delaware County has achieved an unprecedented financial milestone, becoming the first county in Ohio to simultaneously hold four Aaa bond ratings. This announcement came during a recent session of the County Commissioners, where County Auditor George Kaitsa shared the news. Kaitsa revealed that Moody’s Ratings upgraded the county’s Sawmill Parkway bonds to Aaa last week, bolstering the county’s impressive bond rating portfolio. Delaware County already held top ratings for its general obligation debt portfolio from both Moody’s and S&P Global Ratings, as well as an Aaa rating from S&P for its sewer bonds.
Why Delaware County’s Aaa Rating Matters
According to Moody’s, Delaware County’s Aaa rating reflects the region’s robust financial health. The upgrade in bond status demonstrates strong fiscal stewardship and ensures that taxpayers will benefit from reduced borrowing costs on future county projects. Moody’s analysis highlighted that the Sawmill Parkway bond’s Aaa rating underscores the broad revenue base provided by sales tax, noting that this revenue source offers “exceptionally strong coverage” for the county’s debt.
Auditor Kaitsa emphasized the importance of the county’s sound financial management:
“The rating upgrade serves as a report card for Delaware County, reflecting the great leadership of our elected officials and the strength of Delaware County’s economy.”
Kaitsa credited the Commissioners’ decision in August 2022 to permanently establish a 0.5% sales tax as a significant factor in the recent upgrade. By converting the sales tax, originally enacted in 1971, to a permanent rate, the county secured a stable revenue source for future debt, satisfying one of Moody’s key criteria for an Aaa rating.
Commissioners Celebrate Financial Milestone
Commissioners Gary Merrell, Barb Lewis, and Jeff Benton echoed Kaitsa’s sentiments, attributing the rating achievement to prudent financial management and collaboration across departments. Commissioner Merrell noted:
“This upgrade is made possible by the stewardship of many in the County. Being fiscally responsible in how we manage our taxpayers’ money is paying dividends in the short term and most certainly will pay dividends in the long term.”
Commissioner Lewis acknowledged the contributions of other county officials, including County Engineer Chris Bauserman and Finance Director Justin Nahvi, for their roles in Delaware County’s historic financial accomplishment:
“Special congratulations to Auditor Kaitsa, County Engineer Chris Bauserman, and our Finance Director Justin Nahvi for their work in enabling us to become the first county in Ohio with four Triple-A bond ratings. Our taxpayers will pay less interest on the important projects that the County chooses to bond in the future.”
Commissioner Benton added to the celebratory tone, underscoring the long-term benefits for county residents:
“Four Aaa credit ratings is an amazing achievement, and the taxpayers of Delaware County will continue to benefit from this credit enhancement for years to come.”
What Four Aaa Ratings Mean for the Future
Delaware County’s four Aaa bond ratings signify more than just a financial accolade—they represent tangible savings for the county and its taxpayers. With lower interest rates on bonded projects, Delaware County is positioned to invest in infrastructure, public services, and other community initiatives at a reduced cost. This financial stability also enhances the county’s attractiveness to potential businesses and investors, potentially fostering economic growth and job creation.
Looking ahead, the county is well-equipped to tackle future projects while minimizing costs to its residents, a testament to Delaware County’s long-standing commitment to fiscal responsibility. The Aaa ratings act as a safeguard, ensuring that future borrowing remains cost-effective and that the county’s financial future remains bright.
Source: Delaware County; Image by Gerd Altmann from Pixabay
