KBRA affirms top ratings for Buncombe County bonds, outlook stable

Buncombe County kept its top credit footing this week, with KBRA affirming AAA ratings on the county’s general obligation bonds and AA+ on its limited obligation debt while leaving the outlook stable.

For taxpayers, the rating matters in plain terms: AAA is the kind of signal that can help Buncombe borrow more cheaply when it issues voter-approved debt, which can reduce the interest paid over time. That can make it less expensive to finance projects such as affordable housing, open space, greenways and other long-term capital needs, instead of sending more local dollars to Wall Street-style borrowing costs.

KBRA’s April 16 action assigned AAA to Buncombe County General Obligation Bonds, Series 2026A and Taxable General Obligation Bonds, Series 2026B. It also assigned AA+ to the county’s Limited Obligation Bonds Series 2026A, Series 2026B and Taxable Series 2026C, and affirmed the county’s outstanding long-term ratings at AAA and AA+, respectively, with a stable outlook.

The county’s general obligation debt is tied directly to voters. Buncombe’s debt transparency materials say GO bonds are approved by referendum and backed by a promise to levy taxes enough to pay the debt service. That means strong credit can help keep the price of borrowing down, but it also gives county leaders room to choose how aggressively they use that capacity.

That question is especially important in a budget year shaped by Hurricane Helene. Buncombe County adopted a $433.1 million general fund budget for fiscal year 2025-26 and set the property tax rate at 54.66 cents per $100 of assessed value, based on an estimated $52.9 billion in taxable property and a 99.00% collection rate. County officials have said Helene left them facing an $11.4 million revenue loss, and earlier in 2025 staff projected a $20 million shortfall.

Even so, the county has kept moving on capital planning. Voters approved two bond measures on Nov. 8, 2022, a $30 million open space and greenways bond and a $40 million affordable housing bond. The open space measure won with 68.73% support, while the housing bond passed with 61.78%. County materials said the housing bond could cost typical households about $14 a year for 20 years.

County dashboards now show 16 projects approved across the housing and open space portfolios, and earlier reporting said roughly $30 million in bond money had helped fund 696 housing units. The Buncombe County Board of Commissioners also created the General Obligation Bonds Community Oversight Committee in August 2022 to add outside scrutiny from accounting, banking, housing, conservation and chamber representation.

With a seven-year capital improvement plan due to begin in fiscal year 2026 and a capital reserve built through annual General Fund transfers, Buncombe’s credit strength gives it options. The real test is whether county leaders use that strength to lower long-term costs for residents or to add more debt with little immediate return.