Henrico’s water and sewer bonds earn nation’s highest rating, boosting future projects and taxpayer savings

HENRICO COUNTY, Va. (WRIC) — Henrico County leaders are celebrating a major financial achievement after becoming the first public utility in the nation to hold “quadruple AAA” status for water and sewer revenue bonds. Officials say this distinction will save taxpayers millions.

The ratings come from all four of the main municipal rating agencies:

• S&P Global Ratings
• Moody’s Investors Service
• Fitch Ratings
• Kroll Bond Rating Agency

According to officials, the high status will allow the county to secure the lowest possible interest rates when selling its bonds, which will reduce borrowing costs and free up funds for future infrastructure projects.

Henrico County Manager John Vithoulkas announces County's historic credit rating. (Photo: Deniel Dookan, 8News)

County Manager John Vithoulkas said the rating reflects Henrico’s financial management.

“An accomplishment like this speaks to the planning, the execution, the fiscal management of the county, and really the strength of our finance and utility departments,” Vithoulkas said.

Back in August, Henrico became one of three counties in the nation to earn “quad-AAA” status for general obligation bonds. Chesterfield County also earned the prestigious ranking.

Officials say this latest achievement comes at a pivotal time, as the county undergoes a $300 million water pipeline project designed to bring reliable drinking water to residents across Henrico. The 13-mile pipeline will connect the county’s western and eastern ends, allowing more communities to be served by Henrico’s own water treatment facility.

So far, the county has approved $125 million in water and sewer bonds to help fund the project.

Map of Henrico's water pipeline project. (Photo: Deniel Dookan, 8News)

“That project is underway, design is underway, and we need to put it on fast forward,” said Board of Supervisors Chair Dan Schmitt. “This type of bond rating and the ability to borrow at these rates should put that on cruise control.”

The new pipeline will also prevent future service disruptions like the one experienced in January, when a power outage shut down Richmond’s water treatment plant and temporarily cut off service to parts of central and eastern Henrico that rely on the city’s system.

“This gives us a second redundant source of water,” Vithoulkas said. “Should something happen to either the water treatment plant or regional water distribution, we would have another way of getting water to all of our residents.”

County leaders say taxpayers won’t see an increase in utility bills from the project. Construction is expected to begin next year and take at least five years to complete.