Mayor John G. Ducey is proud to announce that Moody’s Investors Services, Inc. has assigned a MIG 1 rating to the township’s $16.8 million Bond Anticipation Notes and an Aa2 rating to the township’s $24.8 million General Improvement Bonds, Series 2017. Moody’s has also affirmed the Aa2 rating on the township’s outstanding general obligation and guaranteed bonds.
“This is great news for the township and the taxpayers of Brick,” said Mayor Ducey. “It is an affirmation that the township’s fiscal health is strong and that our efforts to create a more fiscally responsible government are working.”
The MIG (Municipal Investment Grade) is used to rate US municipal bond anticipation notes of up to three years maturity. MIG1 is the highest rating for short-term debt. The designation “denotes superior credit quality.” Moody’s Aa2 rating is assigned to obligors who are “judged to be of high quality and are subject to very low credit risk.” It is their third highest rating on long-term debt.
Moody’s cited the township’s strong financial position, conservative budgeting and “ample liquidity and reserves” as factors in their rating assignments.
One of Mayor Ducey’s priorities has been to rebuild the township’s surplus. “Think of the surplus as your home’s savings account. You want a healthy saving to help in the event of unforeseen costs and to add financial stability to your home. We are operating under the same principle. We want the township to have a healthy savings account.”
Over the past three years, the township has used an average of 54.06% of available surplus, leaving an average surplus balance of $8,871,136. This year’s balance is $10,955,597.
Mayor Ducey cites the 2011 referendum as an example of what can happen when the township’s savings account is depleted. “In the three years prior to the 2011 referendum, the township used an average of 99.3% of available surplus to fund the budgets. There were no savings left to help stabilize the township.”
The strong ratings from Moody’s will help increase market access when issuing bonds and notes and will lead to lowered borrowing costs.
“These ratings help determine our borrowing costs when we issue bonds and notes for projects and operations. The better the rating, the lower the borrowing costs, which in the end means savings for our taxpayers,” said Mayor Ducey.