Cobb County staff cites sustained AAA rating, notes liquidity timing and 9-1-1 funding pressures

Bill Volkmann, chief financial officer for Cobb County, updated the Board of Commissioners on the county's credit rating and year-end financial outlook during an education session. Volkmann said the county has retained a AAA credit rating for 28 consecutive years and described actions since 2018 that addressed a prior negative outlook.

Why it matters: The county's credit profile affects borrowing costs and fiscal flexibility; fund balances, cash timing and major liabilities such as pensions shape credit assessments and the county's capacity to fund services and capital projects.

Volkmann reviewed Moody's and internal assessments showing improvements since a 2018 negative outlook that followed projected operating deficits and low reserves. He said Moody's' most-recent commentary attributed Cobb's AAA to a robust local economy, consistent financial performance, maintenance of reserves, proactive financial management, and manageable debt and liabilities. "The county's AAA reflects our view of county's robust economy, consistent positive financial performance, maintenance of reserves, proactive financial management practices and policies, and a manageable debt and liabilities," he read from Moody's commentary.

Volkmann said the county's pension funding ratio rose from about 51.56% in 2018 to 63.9% and that the county has reduced outstanding liabilities while limiting new general-obligation borrowing. He cautioned that liquidity measures still "underperform" relative to median AAA counties because Cobb's property-tax revenue is concentrated in a single annual collection: property taxes are collected after the fiscal year ends, with collections typically by Oct. 15 following a Sept. 30 fiscal year end. Volkmann said that timing reduces the county's measured cash on Sept. 30 even though those revenues arrive shortly afterward; he said rating reviewers account for that timing when assessing liquidity.

Volkmann provided current-year snapshots and cautioned about two operational pressures: claims and 9-1-1 funding. He said the county's claims fund has seen increasing claims and legal costs and is being watched, and he warned that the 9-1-1 fund is capped at $1.50 per line and is drawing down fund balance; if the cap is unchanged, the county may need to budget a general-fund contribution to 9-1-1 by 2027. He also noted that ARPA and other federal dollars increased cash in 2021 and that spending those funds contributed to subsequent cash fluctuations.

Volkmann gave quantitative context where the presentation provided it: he reported countywide available fund balance at about 40% of revenues, said the general fund millage rate has remained 8.46 mills since 2018, and said general-fund property-tax receivables at fiscal year end are typically in the region of $300,000,000 (these receivables exist at Sept. 30 but are collected after year-end). He said the county's pension funding has improved but that a healthy funded ratio would be roughly 80%.

Volkmann also outlined the 2027 budget schedule: department requests due Oct. 1, audits running through March, department budget submissions in December, a consolidated budget presentation in April, and public hearings and adoption in June/July; he said the county will begin the 2027 budget kickoff and public education sessions that month. He emphasized that the budget process will include revenue reviews and rate analyses and that commissioners will be consulted on priorities.

What to watch next: Volkmann said a full year-end update will follow when the audit concludes in March; commissioners flagged the timing of property-tax collections and asked staff to continue exploring options (for example, different tax-collection schedules or other revenue sources) to smooth cash flow and sustain reserves.