Avalon Maintains AAA Bond Rating, Again Achieves Exemplary Audit

AVALON — The Borough of Avalon has maintained an AAA bond rating from Standard and Poor’s which continues to save the Borough hundreds of thousands of dollars relating to debt management. Avalon requested a rating be applied to a $6.095 refunding bond and Standard and Poor’s maintained AAA rating for the Borough.
“This is outstanding news for taxpayers in Avalon and further proof that the Borough pays very close attention every day to managing its finances and minimizing debt”, said Avalon Mayor Martin Pagliughi. “I commend the office of Chief Financial Officer Jim Craft and the Borough Council Finance Committee team that includes councilmembers Dr. Nancy Hudanich and Chuck Covington for its diligence throughout this year, and every year”.
Standard and Poor’s offered commentary and evaluation on Avalon’s request for a bond rating and cited specific reasons for the Borough earning the AAA bond rating, including:
-Strong budgetary performance with only a slight operating deficit in the general fund in fiscal 2016;
-Very strong budgetary flexibility with an available fund balance in fiscal 2016 of 31% of operating expenditures, and the flexibility to raise additional revenues despite statewide tax caps;
-Very strong liquidity with total government available cash at 45% of general fund expenditures;
-Strong institutional framework score; and
-Very strong economy with projected per capita effective buying income at 231% of the national level and market value per capita of $6.7 million.
In addition, Avalon received its independent municipal audit in July, 2017 which shows “no area for improvement” by the Borough for the eighth consecutive year.
Avalon’s budget reports and audits are available at http://avalonboro.net/mun-offices/department-of-revenue-finance/.