Leesburg earns AAA rating
Regarding the new AAA rating, recently appointed interim mayor David Butler said, “I know that we all really appreciate it.”
Fitch and Moody upgraded Leesburg this year, while Standard & Poor’s maintained the rating from last year. AAA ratings give towns better interest rates.
Rose’s report comes at the beginning of the year’s budget discussions, which the town council will be working through in the coming months.
As of 2016, Leesburg has a debt principal of $2.5 million with interest payments amounting to $2.9 million. This debt is 1 percent of the town’s assessed value, with 2.5 percent being the highest it should rise.
The current debt capacity, which is the amount of debt the town can incur before reaching that 2.5 percent assessed value, is $7.3 million. By 2022, however, the town will pay off enough to raise its debt capacity to $45 million. This will give Leesburg the ability to invest in more improvements as needed.
“It behooves us to continue to be fiscally responsible,” Butler said in response to the report.
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