Avalon Retains AAA Bond Rating

AVALON – For the second consecutive year the Borough of Avalon has attained an extraordinary AAA bond rating from Standard & Poor’s Rating Services. The AAA bond rating will continue to save the Borough hundreds of thousands of dollars in interest on any future borrowing and refinancing of existing debt. The notice of the AAA bond rating, the highest rating offered by Standard & Poor’s, was delivered to Avalon Finance Office on March 14, 2014.
“This exemplary bond rating offered by Standard & Poor’s is evidence that the Borough works diligently on long term financial planning every day”, said Avalon Mayor Martin Pagliughi. “The Avalon Borough Council and our Chief Financial Officer Jim Craft deserve a tremendous amount of credit for retaining this extraordinary credit rating which translates into huge savings for taxpayers for many years to come”.
In its report, Standard & Poor’s notes that Avalon has experienced high-end residential waterfront development over the past decade that increases taxable value. The current estimated market value equals $7.6 billion in Avalon while projected per capita effective buying income is extremely strong at 305% over the national level. Standard & Poor’s also classifies budgetary flexibility as “strong” with available current fund reserves, or surplus, at $3.4 million or 14.4 percent of operating expenses.
Standard & Poor’s also compliments Avalon for maintain “very strong liquidity” with strong cash to cover debt service and expenditures. Total available cash and unrestricted investments equal 31.1 percent of total governmental fund expenditures and 183 percent of debt service. Avalon “has strong access to external liquidity” according to the report.
“Avalon’s long commitment to planning and zoning issues and our emphasis on resiliency from coastal storms all factor into this favorable AAA bond rating”, Pagliughi said. “All of these efforts factor into our bond rating, low municipal tax rate, and our ability to currently offer 25 percent discounts on flood insurance premiums”.
Standard & Poor’s and its predecessor organizations have been in business for more than 150 years. As one of the world’s leading providers of independent credit risk research and benchmarks, Standard & Poor’s publishes more than a million credit ratings on debt issued by sovereign, municipal, corporate and financial sector entities. In 2013 alone, Standard & Poor’s rated $6.6 trillion in new debt.
For additional information, please visit www.avalonboro.net.