East Windsor Township Announces Major Municipal Bond Rating Upgrade From “AA” To “AA+” By S&P Global Ratings
Published on May 30, 2019 at 11:37a.m.
Mayor Janice S. Mironov announced today East Windsor Township has earned a major and significant municipal bond rating upgrade from AA to AA+ by S&P Global Ratings.
Mayor Mironov stated “this important bond rating upgrade reflects the Township’s very strong and stable financial condition. The Township requested this review by the independent rating agency while preparing for the recent refinancing of $6.5 million in general obligation bonds at lower interest rates, resulting in more than $350,000 in taxpayer savings. Additional savings are anticipated on future financial transactions with this noteworthy upgraded municipal bond rating.”
The review by S&P Global Ratings expressly underscored the “Township's sustained positive operating performance,” conservative financial management and policies, and many positive financial attributes, including strong budgetary flexibility, stable tax rate, constrained expenses and cost-cutting actions, increased revenue and robust fund balance, and low overall net debt of only 2.7 percent of market value.
The S&P Global Rating upgrade also noted the “very strong” local economy with numerous private development projects in progress which “will boost the tax base,” and the Township’s location with access to major employment centers and an excellent transportation network. The S&P fiscal review incorporated six years of historical data and five-year budget and surplus future forecasts.
In issuing the rating upgrade, S&P highlighted the Township’s conservative budgeting practices, expenditure controls, as well as a fund balance policy of maintaining healthy reserves, providing very strong budgetary flexibility and financial liquidity with available cash equal to 53.4% of the prior year general fund expenditures.
“This key upgraded AA+ bond rating is a meaningful reflection of our responsible and conservative stewardship of Township finances and will pay dividends for taxpayers well into the future,” said Mayor Mironov.