The city of Locust Grove announced they received a Aa bond rating ahead of an upcoming T-SPLOST bond sale. Bond ratings measure the city’s financial strength and ability to repay debt.
Specifically, the city received a Aa3 rating from Moody’s Investors Service. Moody’s considers Aa to be obligations judged to be of high quality and subject to very low credit risk. By comparison, the highest bond rating is Aaa.
T-SPLOST Bond Sale
Moody’s Investors Service scored Locust Grove ahead of an upcoming T-SPLOST bond sale. The city anticipates holding the bond sale later this month for $7.2 million. The Aa bond rating helps secure lower interest rates for the city.
The bonds are to pay for transportation SPLOST projects. Bonding the funds now allows the city to start projects immediately, instead of waiting for tax collections. The T-SPLOST program spans five years beginning on April 1, 2022. Voters approved transportation SPLOST last November.
The city will use the T-SPLOST collections to pay back the bond sale.
Locust Grove allocated about two-thirds of its expected transportation SPLOST collections for major improvements along highway 42 and Bill Gardner Parkway. These projects include the following:
- Highway 42 congestion relief projects between MLK Jr. Blvd and Colvin Drive – $3.5 million (partnering with Georgia DOT)
- State Route 42 extra lane between Bill Gardner Parkway and Marketplace Blvd – $900,000
- Bill Gardner Parkway widening west of I-75 – $500,000 (partnering with Henry County)
- State Route 42 at Bethlehem Road intersection improvement – $200,000
In addition, Georgia DOT has a separate widening project outside of T-SPLOST. That project will add a second southbound lane on highway 42 between Bill Gardner Parkway and Peeksville Road. The state plans to accept construction bids later this year.
Continuing with Locust Grove T-SPLOST projects, the city set aside $2.15 million for street resurfacing. Projects include various subdivisions.
More information about Locust Grove transportation SPLOST projects is available on the city website.
Featured image shows the location of planned transportation projects in Locust Grove. Photo credit Locust Grove.
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