For the first time ever, West Windsor’s general improvement bonds have been given a AAA long-term rating by Standard & Poor’s Rating Services.##M:[more]##
A township press release said that S&P based its rating on “the rapidly expanding local economy, sound commercial base, above-average wealth levels, consistently solid financial performance characterized by sound reserve levels, and overall favorable debt position coupled with modest future borrowing needs.”
According to Joanne Louth, the township’s chief financial officer, whenever a municipality needs to borrow money and sell bonds, it is required to get a rating from a rating company. Prior to this bond rating, the township had a bond rating in 2005 by Moody’s of Aa2. The company looks for factors including the amount of reserves the township has, the collection of the tax rate, and the amount of debt it has.
Business Administrator Chris Marion said the rating process involved meeting with the S&P team as well as a comprehensive review of the township of everything from policies and procedures to management.
Mayor Shing-Fu Hsueh said that only 88 municipalities in the nation had bond ratings of AAA, six of which are in New Jersey, including West Windsor. Louth said the rating is “pretty elite in the borrowing industry.” Because of the rating, the recent bond sale saves township taxpayers an estimated $115,”000, she added.
