To keep its top bond rating, Howard officials must demonstrate they are on top of the new standards requiring the county to show it can cover current and future retiree benefits.
“They won?t expect us to have all the answers, but they will expect us to be aware of the problem [and show that] management is dealing with it,” said Sharon Greisz, the county?s director of finance, referring to the officials? meeting with three bond rating agencies next month.
The annual meeting, which is a part of the county?s bond sale process, is an update on the county?s economic outlook and overall quality of life.
County Executive Ken Ulman, county Budget Director Ron Weinstein and County Council Chairman Calvin Ball, D-District 2, are amongthose expected to make the presentation.
The bond rating agencies examine the county?s industries, its top tax payers, median household income, the county surplus and tax burden on residents, among other points, Greisz said.
The county?s AAA rating, which is the highest rating, allows it to borrow money at a low interest rate and shows there is less of a risk the county will default on a loan.
Different this year is the requirement of showing how the county plans to fund retiree benefits, an issue counties nationwide are grappling with.
In Howard, this obligation is roughly $477 million.
Based on the current employee benefit program, Howard must set aside about $53 million each year to pay down this debt, and former County Executive James Robey said some of the county?s $38 million surplus could go toward this obligation.
“The issue is making sure we satisfy the rating agencies, so it doesn?t affect our AAA rating,” Ulman said, adding that it is still unknown exactly what the agencies are looking for in addressing this requirement.
Also different this year are several new faces in Ulman?s administration and the County Council.
The county executive has invited the council chairman to attend since 1991, Ball said at the council?s monthly meeting Monday.
However, given that most of the council is new, and the accounting requirements are new and potentially complex, some council members suggested more than one council representative attend the meeting.
Members agreed to research what other counties do and what it might cost to send at least one more council member.
“If there was ever the year to take the approach other counties do, this is the year,” said Council Member Greg Fox, R-District 5.
