The Wake Forest Town Board work session Tuesday, October 1, 2024, consisted of hearing the same presentations about two rezoning and development cases heard the week before at the planning board meeting.
Senior planners Patrick Reidy and Tim Richards repeated the details for the requested rezonings for a Jones Dairy Road property where the Williams family wants to build two two-story buildings for mixed use and for the former truck stop at Capital Boulevard and Burlington Mills Road where Johnson Automotive wants to build a Hyundai dealership. No actions were taken by the commissioners.
The best news came from Chief Finance Officer/Assistant Town Manager Aileen Staples, who said the town had sold several bonds that day.
“We were very pleased with the results of the bond sale. The interest rates came in lower than expected/projected. Our recent Triple – triple A affirmation by three national rating agencies — is a testament to the lower rates which in turn save our taxpayers money!
“We received 16 bids with TIC (true interest cost) rates ranging from 3.18% – 3.27%. Truist Securities, Inc. was awarded the bid – 3.18% – 20 year.
“Series 2024 A Bonds – $ 1,460,000: Two-thirds – Parks and Recreation
“Series 2024 B Bonds – $22,050,000: Public Improvement Bonds (first issuance from the November 2022 referendum)”
The following was released last week
The nation’s three top bond rating agencies – Standard and Poor’s, Moody’s, and Fitch – have reaffirmed the Town of Wake Forest’s AAA rating following recent meetings with each agency.
The ratings are associated with a $1.5 million General Obligation (GO) Public Improvement Bonds Series 2024A and estimated $22.1 million GO Public Improvement Bonds Series 2024B planned for an October 1 sale for roadway and transportation, parks and recreation, and greenway improvements. The sale represents the first issuance of the November 2022 GO Bond Referendum approved by the voters.
The Town’s excellent bond ratings communicate to businesses and individuals that Wake Forest is a healthy community. It signals current and potential investors that the Town’s financial future is strong and ensures Wake Forest’s interest costs will remain as low as possible.
“This achievement is a direct result of our strong financial policies, cautious and conservative fiscal planning, and prudent budgetary monitoring,” said Assistant Town Manager/Chief Financial Officer Aileen Staples. “A triple A rating by all three agencies is a significant accomplishment that acknowledges our strong fiscal position and one of which we can all be proud.”
A credit rating is an opinion on the general creditworthiness of an obligor, or the creditworthiness of an obligor in respect to a particular debt security or other financial obligation. Over the years, credit ratings have achieved wide investor acceptance as convenient tools for differentiating credit quality.
According to Moody’s, “Wake Forest, NC’s Aaa issuer rating reflects the town’s growing local economy driven by its location in the Raleigh-Cary MSA, proximity to the Research Triangle Park, and an effective downtown redevelopment and ample greenway that has made the town a desirable place to live. The town’s growing local economy is best reflected by the 47% growth in its tax base to $11.7 billion in fiscal 2025 from $8.0 billion in fiscal 2024. A strong pace of permitting activity will continue to drive tax base and population growth.
S&P’s “AAA” rating reflects its view of a few of the following Town characteristics:
- Location northeast of Raleigh, N.C., with a population of nearly 60,000, composed of a predominantly residential tax base, with favorable access to employment opportunities in Raleigh as well as in Research Triangle Park;
- Historically surplus financial operations and expectation for continued financial strength due in part to a growing tax base tied into a robust economic area, with revenues consistently outperforming budget;
- Consistent maintenance of very strong available reserves above 25% of operating revenue in the past few years, in compliance with a minimum fund balance policy calling for unassigned reserve maintenance of at least 20%-25% of general fund expenditures;
- Low debt and fixed costs that we anticipate will remain stable and affordable despite the likelihood of additional bond issuances relating to the $53 million of authorized but unissued debt available to the town;
- Comprehensive array of financial policies and practices consisting of conservative budgeting assumptions, monthly budget-to-actual reporting to the town board, and rolling five-year financial and capital projections, as well as adherence to formalized investment, debt, and minimum fund balance policies.”
Fitch’s AAA Issuer Default Rating (IDR) and GO ratings reflect “the historically strong operating performance and available reserves supporting its ‘aaa’ financial resilience assessment. The ‘aaa’ assessment incorporates an ‘ample’ level of budgetary flexibility in the form of revenue and expenditure control and Fitch’s expectation that reserves will be maintained at or above 7.5% of spending. Fitch expects Wake Forest will continue to maintain healthy financial flexibility throughout economic cycles.”
For more information, or to read the entire reports from S&P, Fitch, and Moody’s, visit wakeforestnc.gov and search “Municipal Bond Sales” or contact Assistant Town Manager/Chief Financial Officer Aileen Staples at 919-435-9461 or astaples@wakeforestnc.gov.
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