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County retains strong credit ratings
SOLANO COUNTY - Strong financial management and proactive steps taken to adjust to the prevailing economic conditions are among the reasons Solano County retained its current credit rating by Moody’s Investor Services.
The rating agency reviewed the County’s financial position in November, and Moody’s affirmed the County’s Aa2 Issuer rating, Aa3 Pension Bond rating, and A1 Certificates of Participation rating. These ratings were initially assigned to the County in April 2008.
“Given the difficult financial environment over the last two years – from the local economy to State budget woes – this affirmation says volumes about the County’s long-term approach to managing its financial responsibilities,”
Moody’s cited in its April 2008 report that the County’s General Fund position, proactive budget monitoring, manageable debt level, rapid repayment of outstanding long-term debt and overall healthy financial operations in assigning their ratings.
The County has maintained the rating agency’s confidence in all of these areas.
Lomeli said the County’s general budgeting and reserve policies create the solid foundation that impressed the rating agency. These policies include:
• Building reserves during economic expansion for use to stabilize spending during fiscal distress; spending down the reserves no more than $6 million per year.
• Avoid back-filling reductions in state and federal funds with County discretionary dollars, to the extent possible.
• Use one-time revenue for one-time costs instead of ongoing operational expenses.
• Maintain a target of 10 percent of the total County budget, excluding inter-fund transfers, in Reserves; minimum amount is $20 million. The County’s adopted budget for Fiscal Year 2010/11 has $26.2 million in unobligated General Fund reserves.
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The County of Solano, under the direction of the Board of Supervisors, delivers a wide variety of local government services. The County's mission is to serve the people and to provide a safe and healthy place to live, learn, work and play.
Page Updated Last on: Dec 02, 2010