Though municipal bonds typically don't stir up much enthusiasm, Charlottesville's financial managers, and its taxpayers, have a good reason to be excited about the city's bond rating.
Both Standard and Poor's and Moody's Investor's Service gave the city's municipal bonds a AAA rating, their highest values. The rating means Charlottesville bonds are considered a very safe investment.
The high rating allows Charlottesville "to get a better interest rate when we issue municipal bonds, thereby saving the taxpayers money" on servicing the debt, Charlottesville Director of Finance Rita Scott said.
According to Standard and Poor's ratings report, Charlottesville merited the AAA rating in part because of "a stable economic base anchored by the vast presence of the University of Virginia."
The report also noted that Charlottesville's wealth measures (including per-capita income) "are still above average at 115 percent of the national level despite the deflating effect of approximately 20,000 university students."
The report also cited Charlottesville's steady growth in the property tax base, a low debt burden, and a low unemployment level in its ratings report. Charlottesville's unemployment now stands 2 percent, about half the national average in 2001.
Anyone ever stuck in traffic on Route 29 can attest to Standard and Poor's note that Charlottesville "serves as a regional retail center that supplies the county and neighboring residents," keeping per capita retail sales nearly triple - 278 percent - the national average.
Improvements funded by bond issues include utility improvements in water and wastewater processing and the new Automated Meter Reading project.
The AMR project uses a radio signal system and a minivan that serves as a mobile data collection unit to monitor consumer's use utilities.
According to Scott, a meter reader in the field took 4 to 5 hour to read a meter book, but the new system takes roughly 15 minutes to read the same route.
Other benefits of the project include the elimination of estimated billing and a new early warning system for potential consumer usage problems such as water leaks. The project began in October 2000 and was completed near the end of September.
"These improvements will provide for the future utility needs of city residents and improve customer service," Scott said.
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