Oakland County, Michigan retained its Aaa bond rating on $3.1 million Building Authority Refunding Bonds, Series 2014, County Executive L. Brooks Patterson announced today. Moody’s Investors Service cited the county’s strong fiscal management practices as the reason behind awarding it the highest credit rating with a stable outlook.
“We expect the county’s financial position will remain strong going forward owing to continued application of very solid fiscal management practices,” Moody’s said. “The county’s strong management practices include annual adoption of a three-year budget with two additional forecasted fiscal years under very conservative assumptions.”
The reaffirmation of Oakland County’s Aaa bond rating, which it has held since 1997, comes on the same day Patterson delivers his budget recommendation to the Board of Commissioners. His three-year budget recommendation is balanced through Fiscal Year 2017. The budget is also balanced for fiscals 2018 and 2019 based on the county’s five-year outlook.
“It is long-range planning coupled with action that separates Oakland County from other counties in Michigan and the nation,” Patterson said in his budget message. “We believe in thoughtful management, not crisis management.”
Proceeds of the bonds will be used to refund outstanding Building Authority Bonds Series 2007 for anticipated interest cost savings. The bonds are payable from rental payments made to the authority by Oakland County pursuant to an existing lease agreement. The properties are subleased to the Oakland County Community Mental Health Authority which realizes all benefits from the bond refunding savings.