Avondale Estates receives credit ratings before borrowing $8.4 million for Town Green, other projectsCity of Avondale Estates. Photo by Dean Hesse.
This story has been updated.
Avondale Estates, GA — The city of Avondale Estates is preparing to borrow $8.4 million by issuing Urban Redevelopment Agency revenue bonds, which will pay for the Town Green, market pavilion and part of the North Woods project.
A spokesperson for the city says Avondale Estates currently doesn’t have any bond debt and has never had bond debt in its history.
The city has announced its credit ratings. The city received an initial Aa1 general obligation unlimited tax rating from Moody’s and Standard & Poor’s has assigned the city an initial rating of AA+ with a stable outlook. Both Moody’s and Standard & Poor’s cited the city’s strong economic outlook, sound budget management and financial policies among the reasons for these prestigious ratings, according to a press release.
“The city’s budget management is very strong, as evidenced by the maintenance of excellent reserves and liquidity. Transparency and disclosure are favorable due to quarterly disclosures, while the city’s strong formal fund balance policy speaks to above average policy credibility and effectiveness,” said Gregory Max Sobel with Moody’s.
Avondale Estates is the highest-rated small city, with a population 5,000 or less, in Georgia by Moody’s and in the top 10% of ratings for small cities nationwide. Avondale Estates has the smallest tax digest and fifth-smallest budget of all cities rated Aaa/Aa1 by Moody’s.
“We have taken great pride in managing the city’s finances in a disciplined and efficient manner,” Mayor Jonathan Elmore said. “Our strong fiscal management policies have enabled us to continue to enhance the quality of life for our residents while delivering a strong return on investment for all stakeholders within the city. We are honored to meet the highest standards of fiscal responsibility by both Moody’s and Standard & Poor’s.”
The city commission issued the bond anticipation note in 2019, which acted as a line of credit the city could borrow from, City Manager Patrick Bryant previously said. The board issued the BAN to borrow money to develop the Town Green. The proceeds of the 2023 series bonds will be used to permanently finance that loan.
“The bond anticipation note lasts for a three-year period. After that period, once we’re finished borrowing funds through that bond anticipation note, then we have to come back and issue an actual bond to pay off the bond anticipation note,” Bryant said at a city commission meeting in September 2022.
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