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NEW CASTLE COUNTY RECEIVES THREE AAA BOND RATINGS
County Executive Chris Coons has announced that New Castle County's prestigious AAA (triple-A) bond rating has been assigned by Wall Street's three premiere rating agencies - Fitch Ratings, Standard & Poor's Ratings Services, and Moody's Investors Service - in anticipation of a $106 million bond sale scheduled for January.
Triple-A is the best possible rating attainable under all three rating systems. It is a solid, independent validation of New Castle County's exceptional fiscal management, practices, and policies.
On December 8, Fitch Ratings affirmed New Castle County's AAA bond rating, followed by Standard & Poor's Ratings Services on December 9, and Moody's Investors Service on December 10.
"Earning an affirmation of our triple-A rating in the midst of a serious national economic downturn signals the strongest possible validation of New Castle County's prudent financial planning, management, and practices," Coons said. "We will continue to demonstrate fiscal discipline and maintain a balanced, long-term focus on our county's financial challenges by reducing costs, limiting spending, and increasing revenue."
The upcoming sale of $106 million of general obligation bonds will provide funding primarily for sewer infrastructure, as well as for the construction of library facilities and park projects. Like all governments, New Castle County borrows money to fund capital projects to spread the cost over the life of those projects. When bonds are rated AAA, investors who buy the bonds get the strongest possible guarantee that the County will repay the debt, and the County pays the lowest available interest rate. The County, or more specifically, the taxpayers, will pay less in interest on the repayment of bond debt because of the AAA rating.
New Castle County has held the AAA bond rating for nearly eight years. In February 2001, Standard & Poor's Ratings Services upgraded New Castle County to the AAA bond rating, marking the first time in its history that the County government had achieved the top rating. In October 2002, the County received the AAA rating from both Fitch Ratings and Moody's Investors Service, thereby joining the select group of less than 1% of county governments in the United States holding three AAA bond ratings.
NEW CASTLE COUNTY EARNS 19TH CONSECUTIVE BUDGET AWARD
County Executive Chris Coons recently announced that New Castle County has received the Distinguished Budget Presentation Award for its Fiscal 2009 Comprehensive Annual Budget Summary from the Government Finance Officers Association of the United States and Canada (GFOA).
This prestigious award is the highest form of recognition in governmental budgeting that a local government can receive. Of nearly 40,000 units of local government eligible throughout the U. S. and Canada, an average of only 2% receive this honor each year. This is the 19th consecutive year that New Castle County has merited the award.
"It is vital that our residents have access to candid, comprehensive financial information about their county government," Coons said. "I congratulate the employees in our Office of Finance responsible for creating this important document. Through their talent and dedication, New Castle County has earned a distinction that only a small percentage of the thousands of local governments in North America ever receive."
In the selection process, submitted budget documents are reviewed by three independent members of GFOA's Budget Review Panel. To receive the Distinguished Budget Presentation Award, the budget document has to satisfy nationally recognized guidelines for effective budget presentation. A majority of the reviewers must rate the document proficient in each of four major award categories, judging the merits of the budget as a Policy Document, a Financial Plan, an Operations Guide, and a Communications Device.
The GFOA panel members reviewing New Castle County's entry praised the document in their written comments. One GFOA panel member reviewing New Castle County's entry wrote, "[This] document is superb. Definitely one of the best I’ve reviewed in all my years. Staff is to be commended."
The GFOA also presented Acting Chief Financial Officer Edward M. Milowicki with a Certificate of Recognition for Budget Presentation. Milowicki was honored as the individual primarily responsible for the County achieving the award.
The GFOA is a nonprofit professional association serving 17,500 government finance professionals throughout North America. It is recognized as one of the highest sources of financial reporting guidance for state and local governments in North America. The GFOA's Distinguished Budget Presentation Awards program is the only national awards program in governmental budgeting.
2009 COMPREHENSIVE ANNUAL BUDGET SUMMARY NOW ON-LINE
The current fiscal year budget summary is now available for viewing or download by clicking HERE.
PROPERTY TAX INFORMATION
Paying taxes will never be a pleasant task, but New Castle County has made the process more convenient for its residents. HERE are a few things you should know about paying your New Castle County and Local School property taxes on time.
NEW CASTLE COUNTY RECOGNIZED FOR FINANCIAL REPORTING EXCELLENCE
County Executive Chris Coons recently announced that the Government Finance Officers Association of the United States and Canada (GFOA) has honored New Castle County with the Certificate of Achievement for Excellence in Financial Reporting for its Comprehensive Annual Financial Report (CAFR) for the fiscal year which ended June 30, 2007. This is New Castle County's 27th consecutive annual award of this type, the most earned by any municipality in Delaware.
"The Comprehensive Annual Financial Report is one of the tools we use to provide the public with a clear picture of our county's financial situation," Coons said. "By earning the GFOA's Certificate of Achievement, our citizens are assured that New Castle County's financial reporting has met the highest, most stringent, and most current national standards."
This award is the highest form of recognition in governmental accounting and financial reporting. To receive the award, the GFOA's impartial panel must determine that the CAFR meets the high standards of the program, including demonstrating a constructive spirit of full disclosure to clearly communicate its financial story and motivate potential users to read the CAFR. Current and prior year financial documents, including the Comprehensive Annual Financial Report and the Comprehensive Annual Budget Summary, are available on New Castle County's website: www.nccde.org.
The GFOA also presented Senior Financial Officer Michael M. Mackiewicz with an Award of Financial Reporting Achievement for his role as the individual primarily responsible for preparing the award-winning CAFR. A resident of Middletown, "Mack" has worked for New Castle County for over 30 years. He has directed the preparation of the Comprehensive Annual Financial Report for each of the last 22 years.
Acting Chief Financial Officer Edward Milowicki recognized the County Executive and county employees for their commitment to presenting clear and understandable financial reporting to citizens. "Under the County Executive's leadership, the employees in the Office of Finance share a dedication to excellence," he said. "It's an honor to have received this award for 27 consecutive years, and it attests to the high caliber of talent we have working here in New Castle County."
The GFOA is a nonprofit professional association serving approximately 17,000 government finance professionals. It is recognized as one of the highest sources of financial reporting guidance for state and local governments in North America.
NEW CASTLE COUNTY ANNOUNCES REDUCED REVENUE ESTIMATES
Citing continued weakness in the housing market, cuts to short-term interest rates, and a continuation of declines in industrial sewer payments, New Castle County announced reductions in revenue estimates for Fiscal Years 2008 through 2010.
Real estate transfer tax collections from residential and commercial properties are off by more than 15% for the year, despite several large one-time transactions. The County has lowered real estate transfer tax estimates for Fiscal Year 2008 by $1.5 million to $31.5 million, compared to $35.5 million for the prior fiscal year, and indicated the likely need to lower further if the trends of the last few months continue.
"We continue to see a decline in all of our revenue sources, as do many other local governments across the country," said County Executive Chris Coons. "By reducing our estimates in response to market conditions, we are responsibly managing our budget expectations as we continue to work to align our expenditures and revenues," he added.
As the Federal Reserve recently cut short-term interest rates aggressively to bolster the sagging housing industry, interest earnings for the County are expected to fall sharply. These revenues are the interest earned on the county's reserves and cash flow. The County lowered its Fiscal Year 2009 estimate for interest earnings by $2.7 million in the General Fund and $1 million in the Sewer Fund.
Continuing decline in water consumption by both residential and commercial users is lowering sewer-fund revenue, which is based on water use. As a result, the County decreased projections for Fiscal Year 2008 collections and beyond by $600,000, or roughly 10%.
The County also reduced the expected growth rate in property taxes resulting from increases in the assessment base from 1.6% to 1.2%, based on actual performance for this year and continued weakness in the housing market, and lowered the projected growth rate from 3% to 2% for land-use permitting and recordation fees in future years, based on weaker permitting activity and housing market forecasts into next year. These reductions translated into a loss of projected revenues of $600,000 in Fiscal Year 2009 and $1.4 million in Fiscal Year 2010.
FINANCIAL TASK FORCE
In July 2006, a joint initiative between County Executive Chris Coons and County Council led to the formation of New Castle County's Financial Task Force, which was formally established by Council Resolution 06-171. The primary function of the task force is to evaluate county operations, costs, revenues, and growth, and to make recommendations for improving the long-term financial future of New Castle County. For more information, click HERE. |
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