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."
Bail Bonds Chesterfield VA

Virginia raises a toast to George Washington’s whiskey


George Washington is recognized as the father of our country, but with a bill signed into law by Gov. Terry McAuliffe, Washington also will be recognized under another title – distiller of Virginia’s official liquor.

SB 1261, sponsored by Sen. Adam Ebbin of Alexandria, adds a “state spirit” to the list of the commonwealth’s official emblems and designations and crowns George Washington’s rye whiskey with the title.

The bill, which McAuliffe signed last week, highlights George Washington’s contributions to the culture of Virginia as “a native son of Virginia born on February 22, 1732, in Pope’s Creek”; “the first American president, commander of the Continental Army, and president of the Constitutional Convention”; and “a model statesman ... universally acknowledged as the father of our nation.” > Read more.

McAuliffe vetoes 6 more bills; GOP calls him ‘disengaged’


Gov. Terry McAuliffe on Monday vetoed six bills, including three Republicans said would help prevent voter fraud but the Democratic governor said would create barriers to voting.

McAuliffe has now vetoed 37 bills from the General Assembly’s 2017 session – and 108 during his four-year term as governor, surpassing any of his predecessors.

Republican legislative leaders say McAuliffe has broken his promise to be bipartisan, calling his office “the most disengaged administration we have ever worked with.” > Read more.

HSWCD to give away tree seedlings Thursday and Friday


Henricopolis Soil and Water Conservation District will hold its annual tree seedling giveaway March 30 at Dorey Park Shelter 1 from 2:30 to 6 p.m., and March 31 at Hermitage High School from 8:30 a.m. to noon.

Studies show that mature trees increase property value, decrease summertime cooling costs by providing shade, slow erosion and reduce flooding. They also provide homes for birds, food for countless creatures, and playgrounds for children. > Read more.

Dog rescued, no one injured in Northside townhouse fire


MAR. 27, 11 A.M. – No one was injured by a townhouse fire that occurred early Monday morning in the 200 block of Knightsmanor Court, near the intersection of Azalea Avenue and Richmond-Henrico Turnpike.

The first Henrico Fire officials were on scene in less than four minutes and found heavy smoke and flames coming from the two-story townhouse. Firefighters from the first-arriving fire engine and ladder truck made their way to the townhome involved in fire and searched for victims through high heat and reduced visibility. > Read more.

Walk, ceremony to observe Crime Victims’ Rights Week

In observance of National Crime Victims' Rights Week (April 2-8), and to honor victims of crime in Henrico County and raise awareness about crime victims' rights and issues, Henrico County Victim/Witness will hold a commemorative ceremony and informative walk April 5. > Read more.
Community

Villa’s Flagler Housing wins national NAEH award


St. Joseph's Villa’s Flagler Housing & Homeless Services was one of three entities to earn the National Alliance to End Homelessness' Champion of Change Award. The awards were presented Nov. 17 during a ceremony at the Newseum in Washington, D.C.

NAEH annually recognizes proven programs and significant achievements in ending child and family homelessness.

Flagler completed its transition from an on-campus shelter to the community-based model of rapid rehousing in 2013, and it was one of the nation's first rapid re-housing service providers to be certified by NAEH. > Read more.

RIR’s Christmas tree lighting rescheduled for Dec. 12


Richmond International Raceway's 13th annual Community Christmas tree lighting has been rescheduled from Dec. 6 to Monday, Dec. 12, at 6:30 p.m., due to inclement weather expected on the original date.

Entertainment Dec. 12 will be provided by the Laburnum Elementary School choir and the Henrico High School Mighty Marching Warriors band. Tree decorations crafted by students from Laburnum Elementary School and L. Douglas Wilder Middle School will be on display. Hot chocolate and cookies will be supplied by the Henrico High School football boosters. > Read more.
Entertainment

Metro Diner to open second Henrico location


Metro Diner, a comfort food concept, will open its second Henrico location next month. The company is accepting job applications for its Libbie Place location at 5626 West Broad Street. The diner concept, known for its fried chicken and waffles, meatloaf, and shrimp and grits, will bring 100 new jobs to the region as it plans to open its doors in April.

The 3,500-square-foot diner located in the Libbie Place Shopping Center will seat more than 100 and serve classic comfort food staples with a twist, such as fried chicken and waffles topped with strawberry butter and a stuffed challah bread French toast with strawberry and blueberry compote. > Read more.

 

March 2017
S M T W T F S
·
·
·
·

Calendar page

Classifieds

Place an Ad | More Classifieds

Calendar

Tuckahoe Library will host a Death Café from 7 p.m. to 8 p.m. Led by spiritual and bereavement counselor Alane Miles, a Death Café is a gathering during which attendees can discuss death and dying in a surprisingly upbeat and informative way. Ask questions about the often-taboo topics of death, dying, grief and funeral practices. Miles has 20 years of experience in the hospice field, hosts the Death Club Radio show on WRIR and writes for Style Weekly. For details, call 501-1910 or visit http://www.henricolibrary.org. Full text

Your weather just got better.

Henricopedia

Henrico's Top Teachers

The Plate