Financial status has paid big dividends for county
In the annals of Henrico's rich history, what happened one day in 1998 certainly wouldn't register high on the excitement scale or the public-interest barometer.
But on that day, the financial status of the county entered rarified air, elevating Henrico to a perch occupied by fewer than 30 other localities in the nation and giving it financial flexibility that most envy. On that day, when Fitch IBCA gave Henrico a triple-A (AAA) bond rating – the highest possible long-term rating – the county also became even more attractive to potential corporations looking for a home.
The Fitch IBCA announcement made Henrico one of just a small number of counties in the nation to hold AAA ratings from each of the three major bond-rating agencies (Moody's Investor Service and Standard & Poors Corp. had previously awarded the county their 'AAA' ratings in 1977).
Joining that 'triple AAA' group, which today numbers 34, solidified Henrico as one of the best-managed counties in the nation, too, and signaled its strength to businesses.
"Ratings really are the ultimate report card for a local government," Henrico Finance Director John Vithoulkas said. "It's a key component to our economic development strategy, because the large, savvy corporate clients like to look at things like triple-A ratings."
The achievement ranks No. 19 on the Henrico Citizen's list of the 24 most significant moments in Henrico's 400-year history.
Most Henrico citizens also have benefitted from what happened on that day in 1998, though they may not realize it.
The reason: the stronger a locality's rating, the lower the interest rates it's able to acquire when it sells long-term bonds to finance the construction of roads, schools and other capital improvement projects. When Henrico sells bonds to fund projects here, its flawless standing means that its rates are among the lowest available to any jurisdiction in the nation.
"These ratings are the highest possible and represent the greatest level of confidence by institutional investors in the fiscal affairs of these governments," County Manager Virgil Hazelett said. "Having one of these very rare ratings results in annual savings in the millions for our residents."
The lower rates allow Henrico to keep its debt service payments low each year; the county is expected to have a debt of about $499.9 million as of June 30, and its debt service payments in the 2011-12 fiscal year will represent less than 7 percent of its general fund budget. And county officials have been able to refinance debt on several occasions to save even more money.
The difference between an AAA-rated bond and a AA+-rated bond (the next highest classification) could be as much as 25 basis points, or about 0.25 percent, Vithoulkas said.
"That's a huge difference when you're issuing millions in bonds," Vithoulkas said.
Savings in the millions
In recent years, through four bond sales alone, the county saved more than $18 million. One of those sales occurred one day after the state of Virginia (also a triple triple-A-rated entity) sold bonds itself. Henrico's sale came in nearly 15 basis points lower.
"It was one of those, 'Did that just happen?' moments," Vithoulkas recalled.
During the past several years, Henrico has been joined on the triple triple-A list by neighbors Chesterfield and Hanover counties – giving the metro Richmond region a nearly unmatched financial triumverate. When combined with Virginia's triple AAA status, Vithoulkas said, "It's no coincidence that Virginia is always No. 1 or No. 2 in the listings of best states for companies to locate."
Henrico's proposed 2011-12 fiscal year budget calls for the sale of $33.3 million in general obligation bonds from a bond referendum approved by county voters in 2005. Another referendum is anticipated in coming years to fund additional school and general government projects.
Each time the county seeks to sell bonds, agencies issue ratings. County officials must hold conference calls or meet in person with the rating agency officials who are evaluating their credit-worthiness. County officials also visit the rating agencies every few years in New York to undergo thorough reviews of Henrico's finances.
"It's a very stressful time," Vithoulkas said, "because you basically are going up there and saying, 'Take a look at what we've done financially and give us a grade.' You're going up there with the [county's] operating budget, capital budget, long term financial plans, an audit of the county – basically a number of documents that represent how the county has been managed."
Since 1998, those trips have resulted in continued confidence from each agency.
"These ratings are something we have worked very hard to obtain over many years," Hazelett said. "While there have been a significant number of municipal downgrades during this difficult economy, I am very proud to say that Henrico remains at the top echelon for local governments.
"These ratings are something that many corporate entities look at when deciding where to locate or expand their businesses. Coupled with our low tax rate environment, excellent services, and high quality of life, Henrico is an extremely attractive location within the continental United States."
The Richmond West Breakfast Lions Club (based in western Henrico) recently donated 59 backpacks to the Westover Hills Elementary School on Jahnke Road.
Above, club members display some of the backpacks prior to their distribution. > Read more.
Thanks to a first-place win in The American Protege International Vocal Competition 2014, Glen Allen High School student Matija Tomas will travel to New York City to perform at Carnegie Hall in December.
At the first-place winners recital in Weill Hall, Matija will perform Giacomo Puccini’s opera aria, “Chi il bel sogna di doretta.” She will perform with other vocalists from around the world and have the opportunity to win other awards and scholarships.
Locally, Thomas has performed with Richmond’s renowned Glorious Christmas Nights, Christian Youth Theatre, and WEAG’s Urban Gospel Youth Choir. > Read more.
The John Rolfe YMCA and Gayton Baptist Church have partnered in an effort to bring greater health and wellness opportunities to the community.
Through this partnership, the John Rolfe Y will run Youth Winter Sports programs, including basketball and indoor soccer, in Gayton’s newly renovated $5.5 million outreach center that features a new gymnasium, youth and teen space, social space with café, meeting space and full service commercial kitchen. > Read more.
For our Top 10 calendar events this weekend, click here! > Read more.
Urban Tavern’s big, bold themes impress
The Urban Tavern opened in August, replacing the former Shackelford’s space at 10498 Ridgefield Parkway in Short Pump. Because of local and longtime devotion to Shackleford’s, Urban Tavern has some big shoes to fill.
Without any background information, I headed to the restaurant for dinner on a Wednesday night, two months after its opening.
On a perfect fall evening, four out of eight outdoor tables were taken, giving the impression that the restaurant was busier than it was. On the inside, a couple tables were taken, and a few folks were seated at the bar. > Read more.
‘Alexander’ provides uncomplicated family fun
It’s not surprising in the least that Alexander and the Terrible, Horrible, No Good, Very Bad Day doesn’t much resemble the book it’s based upon.
Judith Viorst’s 1972 picture book isn’t exactly overflowing with movie-worthy material. Boy has bad day. Boy is informed that everyone has bad days sometimes. Then, the back cover.
In the film, the terrible, horrible, no good, very bad-ness is blown up to more extreme size. Alexander Cooper (Ed Oxenbould) has a bum day every day, while the rest of his family (Steve Carell, Jennifer Garner, Dylan Minnette, Kerris Dorsey) exist in a constant bubble of perfection and cheery optimism – to the point that the family is so wrapped up in their own success that Alexander’s being ignored.
So on the eve of his 12th birthday, Alexander makes a wish: just once, he’d like his family to see things from his perspective; to experience the crushing disappointment of one of those no good, very bad days. Once he has blown out the candle on his pre-birthday ice cream sundae, his family’s fate is sealed: one full day of crippling disasters for all of them. > Read more.
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