POLLITT PREPARING FOR 4TH FINANCIAL “REPORT CARD” SESSION ON WALL STREET, PREVIOUS THREE GOT HIGH MARKS

Each year in October, Wicomico County Executive Richard M. Pollitt, Jr. travels to Wall Street to give the three major bond rating agencies a report on the county’s financial health. Following the review, Standard & Poor’s, Fitch Ratings and Moody’s Investors Services respond with a grade or report card-type rating. This grade is of crucial importance since it influences at what interest rate the county can sell its bonds for capital projects. It is also an annual milestone indicating the quality of the county’s financial management.

Despite challenging economic times, the Pollitt administration has received high marks from Wall Street for its fiscal management. Last year the agencies continued their pattern of praising Wicomico County for its sound financial performance citing it for “sound financial performance, conservative financial management, healthy reserve levels, low debt burden and rapid payoff and diversified and stable economic base.” Standard & Poor’s and Fitch both rate the county at AA-; Moody’s rating is Aa2.

In response to decreasing revenues, Pollitt has taken major corrective action to maintain the county’s strong position. He has slashed the county’s operating expenditures by $17 Million (13%) over the past two years. As a result, the county is expected to use only about $2 Million of its fund or savings balance in Fiscal Year 2010. The budgeted amount was $4.7 Million.

Some of the steps taken to reduce expenditures were large. Others were small. All were done to reduce pressure on the taxpayers and to keep the county’s fiscal house in order. Some of the actions taken were:

• Instituting furlough days for all employees
• Negotiating a new, lower electric rate for the county’s six largest energy users
• Ordering all department heads to slash their operating budget by 15%
• Installing energy-saving measures at government buildings
• Cutting almost all county-supported entities by 10% for FY 2011
• Installing energy-saving devices at the Wicomico Youth & Civic Center and Solid Waste facility
• Instituting a minimum “standard of safety” following a 94% cut in state funding at the Roads Department

The Wall Street trip is set for October 13, 14 &15. Pollitt commented, “Good results such as the county achieved in Fiscal Year 2010 are evaluated by citizens and the financial experts in New York who look at all aspects of county management when we go to the bond markets to fund capital projects. I am very pleased that we can go to New York with not only good financial news but are able to demonstrate a commitment to a moderate fiscal approach. We make the trip to get our “report card” with a sense of cautious optimism that we have taken the steps necessary to position the county to respond to these continually challenging economic times.”