S&P raises Berkeley Township’s bond rating from “A+” to “AA-“
This is the second time over the last three years Berkeley Township's financial performance has received this type of recognition by Standard and Poor's (S&P) who raised their bond rating.
It's good news for Berkeley Township taxpayers across the board.
The rise of the bond raising will result in a high credit worthiness that means lower interest rates and savings on thousands of dollars for taxpayers.
A rise in the bond rating means taxes won't have to rise as much for residents as a result.
The higher the bond rating given + the lower interest rates = lower taxes.
Bond ratings go as high as "AAA +".
When the township has to borrow money from financial institutions to do things such as paving roads, upgrading equipment, getting snow plows or garbage trucks or etc. their interest rate in what they'd pay back is and will be lower than other towns with lesser bond ratings.
It helps in Sandy recovery indirectly with keeping the tax rate lower as the township continues their efforts following the storm that devastated the Jersey Shore in 2012.
"Once again we are extremely pleased that S&P has recognized the extreme effort we have made to be financially responsive to our taxpayers despite these difficult economic times." Mayor Carmen Amato said. "We will continue our conservative budget practices in our ongoing effort to improve our finances and find more way's to save taxpayers money."
Of the 33 towns/municipalities in Ocean County, Berkeley Township has the second lowest average overall property taxes.
Berkeley's rating went up by the S&P due to strong budgetary flexibility, strong liquidity with total government available cash of general fund expenditures and government debt service, access to external liquidity is considered strong, and low overall net debt at less than 3% of market value and rapid amortization with 76.5% of debt service to be retired in 10 years and the Township has a strong institutional framework score.
More From WOBM: