FOR IMMEDIATE RELEASE                                               January 31, 2001

CARY, NC – Officials with the Town of Cary will travel to New York City on Monday to meet with several credit agencies to update them on Cary’s financial status as well as its future plans in preparation for selling $76,900,000 in general obligation bonds for water and road improvements. Cary voters approved the bond funding financing plan in a 1999 special referendum. Town Manager Bill Coleman, Finance Director Karen Mills, and others from the Town will meet with Moody’s and Fitch while in New York, and officials with Standard & Poor's plan to visit Cary next month to discuss the possibility of raising their rating of Cary from AA+ to the coveted
AAA-- the best credit standing possible for a local government. Such achievement saves Cary and its citizens hundreds of thousands of dollars in interest over the years as the Town borrows money for large capital projects. The Town of Cary joined a select group of cities in the nation in 1998 after their last such visit to New York when they received Triple A ratings from both Fitch and Moody’s.

"We’re very optimistic about these meetings," said Town Manager Bill Coleman. "Cary continues to have a general fund balance that exceeds annual operating expenditures, a moderate debt position, and a strong economy, all of which are important in evaluating our financial position."

In addition to the $76.9 million bond sale discussion, the Town will also talk with the NYC agencies about plans to refinance $12.4 million in existing debt to get lower interest rates which will save Cary $400,000.

Records indicate that Cary received one of its earliest credit ratings in 1964 when the Town wanted to borrow $415,000 in general obligation bonds for sanitary sewer. At that time, Moody’s gave Cary a Baa credit rating. Since then, the Town has steadily gained ground as area economic development and good Town management lead to increasing financial health for Cary.

"The Triple A credit ratings currently held by Cary mean that the Town is among the best in the world in terms of financial and management status," said Cary Finance Director Karen Mills. "This translates into making the best use of taxpayer monies by getting lower interest when we borrow money for large projects."

While as many as seven cities in North Carolina have AAA ratings, only five have Triple A’s from more than one rating agency, and only three have Triple A’s from three or more. North Carolina has a higher percentage of jurisdictions with AAA ratings than any other state, due in large to NC’s conservative financial practices monitored by the State and Local Government Finance Division of the NC Department of State Treasurer.

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