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A
national credit rating agency, Moody’s,
yesterday improved the rating for the
Town of Wake Forest by two steps, taking
it from A2 to Aa3, an action that was
announced at the beginning of Tuesday
night’s town board meeting.
The improved rating will
directly affect the town’s finances,
saving between $10,000 and $15,000 a
year in interest on the $9.2 million in
general obligation bonds the town will
sell next week. If interest rates rise,
as is very likely, Town Manager Mark
Williams said the town will see even
more savings. The bonds will have a
20-year payback.
The two-step improvement is
“a very rare occurrence,” Finance
Director Aileen Staples said. Upgrades
usually are made a step at a time.
The upgrade was based on the
town’s “phenomenal growth” in the past
and the strong indications that growth
will continue.
The report also said Moody’s
“found comfort” in two areas: the town’s
historically strong financial
performance and a very strong management
coupled with longevity.
“We should be very proud of
our staff,” Mayor Vivian Jones said.
Williams, Jones and Staples
were in New York City the first week of
this month, meeting with financial
institutions about the bonds and the
town’s plans.
At the close of the meeting,
Williams said Jones “did an outstanding
job.” He said he thought the mayor’s
descriptions of the town and its people
“had a lot to do” with the upgrade in
bond rating, putting a face and a feel
to the community for them to see.
The Local Government
Commission, part of the state
Treasurer’s Office, will handle the
electronic bidding for $5.7 million in
the street and sidewalk bonds and $3.5
million in parks and recreation bonds.
Usually the bids go to large financial
institutions that have the best interest
rate.
The bonds are part of the
$16.5 million Wake Forest voters
approved in the spring of 2005.
In other action at the town
board meeting, the commissioners:
-- agreed to annex 4.6 acres
on Shearon Farms Avenue where Waters
Edge Environmental plans to open a shop.
-- agreed to accept the
petition for annexation from Willfair
Properties for 18.8 acres on Rogers Road
where the firm intends to build a
subdivision.
-- approved the site plan
for the second phase at North Park on
Capital Boulevard.
-- agreed to pay Glenn
Harbeck $150,000 for his consulting
services during preparation of the new
comprehensive plan.
-- approved no-parking zones
along South Franklin Street where there
are now orange barrels.
-- approved a 4.8 percent
rate increase for commercial garbage
collection by Waste Industries.
-- held a closed session to
discuss purchasing easements for the
planned widening of South Main Street
from Rogers Road to Forbes Road. |
