Metro’s elected officials, senior management and finance staff were greeted with the welcome news on Thursday, that Moody’s Investors Service and Standard & Poor’s have once again granted the regional government its highest bond ratings: Aaa and AAA, respectively.
These ratings recognize Metro for its stewardship of public funds, including the establishment of a large base of financial reserves, low debt levels and strong financial management policies adopted by the Metro Council.
"What impressed the rating agencies was despite the fact the general downturn in the economy caused a lot of municipal governments to founder, Metro stuck with its financial policies and kept moving forward," said Margo Norton, Metro’s finance director.
The bond ratings came as Metro prepares for a May 23 sale of $140 million worth of bonds to pay for voter-approved projects. Of that amount, $75 million in bonds will be sold to continue the purchase of natural areas authorized by the region’s voters in 2006, and $65 million of new bonds will be sold to continue improvements at the Oregon Zoo as approved by voters in 2008. These bonds will be paid through additional assessments on property taxes in the region over the next 14 to 16 years.
In addition, Metro plans to refinance debt incurred from earlier bond sales, which is estimated to save property taxpayers $2.5 million in interest costs over the next three years.
Metro received similar ratings from the two organizations in March 2007, four months after the region’s voters approved a $227.4 million bond measure to purchase natural areas. Less than one week after the bond ratings were awarded, Metro’s initial offering of $125.4 million worth of bonds sold for more than $131 million to J.P. Morgan Securities, Inc., and achieved lower interest rates than had been anticipated. At the time, Metro estimated the higher bond ratings saved the region’s property taxpayers more than $8 million in interest costs over 20 years.