West Windsor has again achieved a bond rating of AAA from Standard & Poor’s.
The AAA bond rating is the highest available rating, and fewer than 10 municipalities in the state have a AAA rating, according to a statement from the township.
The report issued by S&P stated that the rating reflected the township’s “rapidly expanding local economy with a sound commercial base, despite the township’s overall suburban and rural nature, coupled with access to the broader employment bases of Philadelphia and New York City.”
The report also cited the township’s “strong wealth and income indicators, coupled with historically low unemployment” as well as its “consistently solid financial performance, characterized by sound reserves in excess of 20 percent of budget over the past five audited fiscal years.”
Although home values, which were above the national average in 2008, have experienced modest declines, “foreclosures do not pose significant concerns.” And, the township has several development projects, commercial and residential, that should be completed in the near future, the report states.
“West Windsor’s position remains sound,” the report stated. “Despite a modest drawdown in fiscal 2008, its first in four fiscal years, reserves remain very strong,” the report stated. “The township closed fiscal 2008 with a $433,000 drawdown and a $7.8 million unreserved general fund balance, or, in our opinion, a very strong 23 percent of operating expenditures.”
Further, the report states that S&P anticipates that the economic bases will “diversify and expand” despite the township’s “build-out nature. In addition, Standard & Poor’s expects West Windsor to maintain its healthy financial management and performance, characterized by solid reserves.”
Mayor Shing-Fu Hsueh pointed to the work of Chief Financial Officer Joanne Louth, who he said has worked closely with him and the business administrator to “implement sound budgeting policies and practices and adopt a longer term approach to financial planning and management.”
The bond rating, he said, is anticipated to lower the cost of borrowing money, which translates into lower costs for municipal projects — therefore, saving taxpayers money.
