This report does not constitute a rating action. S&P Global Ratings expects Commonwealth of Virginia municipalities and counties’ (collectively, local governments or LGs) credit quality to remain stable and strong. Local economies that continue to experience good economic growth support this credit quality, buoyed by below-average unemployment, strong economic activity and income metrics, and typically robust reserves maintained by seasoned management teams that adhere to formalized financial policies. We expect many LGs will offset rising expenditures through growing real and personal property tax revenues, as well as other economically sensitive revenues including sales taxes and business license tax revenues, which historically have showed good growth over various economic cycles throughout the commonwealth. Much of the personal property tax revenue growth
