OLD BRIDGE – With an “Aa1” bond rating – the second highest rating Moody’s Investors Service assigns to the top 10% for municipalities both nationwide and New Jersey – it means the township is in excellent financial position, according to Business Administrator Himanshu Shah.
So what is preventing the highest rating of AAA? Shah said factors beyond the township’s control is the prevention, which includes location, wealth of the township, per capita of income and state pension .
“Some of those factors in my view are not necessary and should not be a reflection of the ratings,” he said. “We have showed our ability to make sure we pay our incurring debt … we have proven we are better than some triple A [rating municipalities].”
Shah said the township has proven they “pay back every penny we borrow because we have a very controlled borrowing mechanism.”
The “Aa1” rating reflects the township’s large tax base, strong management, consistent financial operations, and modest debt burden. The Township’s overall financial position continues to strengthen each year under current management.
Shah said the township should not be held accountable for factors not in their control.
“Our goal is to attain the triple A rating,” he said.
Mayor Owen Henry said the confirmation of the strong “Aa1” rating will help the township obtain an attractive interest rate and lower its cost of borrowing when it enters the market to competitively sell its bonds.
“This is the best position for the township to be in as we plan for the future,” he said.
The township has a strong tax base, with high wealth levels and easy access to the broad and diverse New York City metropolitan statistical area. The township’s tax base continues to grow each year, led by a concerted effort by management to increase the commercial presence by attracting new small businesses. The five-year compound annual increase for aggregate market value is 3.5%.
The township’s historically strong management has a history of conservative budgeting and has demonstrated an ability to control expenditures. Proactive planning has ensured the township is well-positioned to meet any unexpected challenges that may arise in the near-term.
