THIRD TIME STILL THE CHARM AS BOND RATERS REAFFIRM CARY ’S AAA

CARY, NC – For the third time in nine years, all three major national bond rating agencies have given the Town of Cary their highest possible rankings on the Town’s general obligation bonds – Triple A (AAA).  The Town’s continued AAA ratings are expected to once again save Cary and its citizens hundreds of thousands of dollars in interest over the years as the Town borrows money for important capital projects necessary to maintain the community’s high quality of life.  The reaffirmed ratings came after Cary officials met by phone last week with Fitch, Standard & Poor’s, and Moody’s to update them on the Town’s financial status and plans for an upcoming bond sale.

“We are very proud of the reconfirmation of our excellent financial position, especially in these tough economic times,” said Town Manager Ben Shivar.  “Our conservative approach to spending coupled with prudent financial management and solid direction from the Town Council have been key elements in our being able to continue to move Cary forward in a responsible and responsive manner.”

According to company documents, Fitch officials based their decision to continue Cary ’s AAA rating on the town’s “exceptionally strong financial position, stable and diverse economy, and generally moderate debt levels that should remain affordable through the life of the 10-year capital improvement plan (CIP).  The town's financial flexibility is extremely high, given large fund balances, a moderate property tax rate, and use of pay-as-you-go funding for capital projects. While declines in sales tax receipts and building permit revenues are forecasted to continue through fiscal 2010 as a result of softening economic conditions, the Stable Outlook reflects the long-term stability of the local employment base and the town's continued prudence in financial management."

According to Standard & Poor’s, the rating reflects the Town's “location within the deep and diverse Raleigh-Durham-Chapel Hill metropolitan statistical area ( MSA ), which seems to be resilient during recessions.”  The rating also exemplifies Cary ’s “healthy growth in the tax base along with ongoing diversification, with expected growth to continue despite the overall economic slowdown.”

Moody's based its Cary rating on " the town’s large and wealthy taxbase in the research triangle, which is expected to be well positioned to weather the economic downturn and strong financial position characterized by consecutive operating surpluses, including one projected in 2009. The rating also incorporates a manageable debt outlook.”

The upcoming bond sale, which is slated for April 29, will be for $53 million in financing approved by voters in 2003 and 2005 referenda to help pay for projects such as Kildaire Farm Road widening, Cary Parkway pavement rehabilitation, Middle Creek Park, White Oak Greenway, Walnut Street Park, and the rehabilitation of sewer mains.  The Town is also planning to refinance approximately $40 million of existing debt to save $1.7 million in interest over the next 11 years.

The Town of Cary is one of only seven cities in North Carolina with consistent AAA ratings.  North Carolina has a higher percentage of jurisdictions with AAA ratings than any other state, due in large part 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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