Howard County officials review bond-rating process, reserve targets after AAA reaffirmation

Howard County finance officials explained how the county retains a AAA bond rating and why rating agencies now emphasize larger unrestricted reserves during a discussion at the council's April monthly meeting.

The county’s long-standing AAA rating and recent accounting choices matter because higher ratings lower borrowing costs for county projects and can reduce debt service paid by taxpayers, officials said.

Finance staff walked the council through the agencies' review criteria, noting that the presentation to rating agencies covers financial metrics, budget process, debt and pension funding, and economic diversity. "Being a triple A county for 28 consecutive years is a huge accomplishment," said Rafael Hiller, a finance staff member who led the briefing. Angela Price, deputy director of finance, and other finance staff joined the presentation and answered council questions.

Hiller told the council rating agencies look at multiple items beyond basic financials: fund balance levels, pension funding, other post‑employment benefits (OPEB), debt policy and the county’s long‑term financial management. He said the county follows a charter requirement to hold a minimum fund…