When reviewing ways to fund upcoming capital projects, Goochland County leaders looked at the options and determined that asking voters for their approval to issue General Obligation Bonds would align with the financial management decisions that earned the county a third AAA rating last week.
Fitch’s AAA rating – plus the previously earned AAA rating from S&P and Moody’s Aaa rating – ensures that with voter approval Goochland County would be able to go directly to the bond market, secure the lowest interest rates available, and benefit from the traditionally lower overall borrowing costs of bond funding.
While there are other funding options available, including cash funding or commercial financing, financing through the bond market would move the included county and schools projects forward without additional administrative costs. “Using bonds to pay for the projects helps ensure that they are started and completed more quickly,” Manuel Alvarez, Jr., interim county administrator said. “Additionally, issuing bonds stabilizes the year-to-year costs for capital projects and spreads the cost of long-life major projects over time.
“It’s also important to note that the entire amount will not be borrowed all at once, but over time, as the projects are ready to be constructed,” Alvarez said. “When any project is ready for funding, the county and its financial advisors will undertake a careful analysis of the current market conditions, interest rates, operational needs, and debt policies before making a final decision to move forward with bond issuance.”
Answers to frequently asked questions, video, and other informational materials are available on the county website at https://goochlandva.us/bonds.