Roanoke City is at "imminent risk" of having its bond rating lowered, according to the City's Finance Director and Mayor David Bowers.
During City Council's meeting Monday morning, Director Ann H. Shawver, CPA, told Council that the bond rating agencies said the City has too much debt, relative to what it has in the bank. Council was told that Richmond is the only other major municipal area in worse standing in the Commonwealth.
Currently, Roanoke's bond rating stands at AA. Shawver said the City will begin negotiating with the bond rating agencies following Martin Luther King Jr. day.
What this means
A bond rating may sound boring, but it is a key component to determining how easy, and at what interest rate a city, county, state, country, or business can raise money at.
If Roanoke's bond rating takes a hit, more of your tax dollars will be needed to pay for future projects, such as renovating the Downtown Market building. that means fewer dollars for other items, or Council will have to raise taxes.
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