City: No New Debt Required for Sewer Improvements

Submitted by the City of Simpsonville

City administrator Russ Hawes announced that the City's cash flow and reserves are very strong, and planned sewer improvements throughout the city will be completed without issuing new debt.  

Following on the heels of last February's bond rating upgrade to AA by Standard & Poor’s, the City of Simpsonville announced that, for the first time since 2004, it will not supplement cash flow with a Tax Anticipation Note.  

S&P wrote in its rating review that the city shows "strong financial performance due, in part to, what we regard as, conservative budgeting practices, as well as strong financial policies and practices that have helped increase unassigned general fund reserves to, in our opinion, very strong levels.”  

“We are a fiscally conservative city that always has an eye on the bottom line.  Eliminating the need for short term debt such as a tax anticipation note shows the fiscal stewardship of our management and City Council." said Mayor Perry Eichor.   

The administrator's report contained an update on the progress on improvements to the city sanitary sewer system. A pay-as-you-go approach was outlined that will eliminate interest and financing costs from the cost of implementing the improvements. 

The city will not be pursuing any revenue bonds or State Revolving Fund loans to fund sewer system improvements as part of this program. In emerging from the recession, the city of Simpsonville has experienced four straight years of operating surpluses.