COURT HOUSE – Moody’s Investors Services has informed Middle Township that the Township’s bond rating has been improved from an Aa3 rating with a negative outlook to an Aa3 rating with a positive outlook. The new improved bond rating was delivered to Middle Township in a document dated June 2, 2014.
“This is a tremendous achievement for Middle Township and affirms the strict fiscal policies and a financial plan that provides long term stability and growth for our community”, said Middle Township Mayor Tim Donohue. “I would like to commend Township Administrator Connie Mahon, Chief Financial Officer Tracey Taverner, and all of our department heads for continuously working to improve Township services while creating more efficient systems to improve collection rates of taxes and fees”.
According to the summary provided by Moody’s, the negative outlook on Middle Township’s $7.4 million of outstanding general obligation debt has been removed. The bonds are secured by the Township’s unlimited property tax pledge. In the report, Moody’s cites various strengths of Middle Township’s fiscal policies including a moderately sized tax base with a healthy population growth; a low and manageable debt profile; and a modest pension burden.
The report also notes “..The Township’s finances have stabilized and we expect modest improvement in cash and reserve levels. Following a protracted period of structurally imbalanced operations caused by decreased state aid, statutory levy caps, and pension contribution increases, the Township’s financial position stabilized in 2011”. Moody’s also cites Middle Township’s 2014 budget that includes a less than one percent increase in the tax levy and a modest decrease in pension payments.
“The actions taken by the current administration to manage its current fiscal circumstance and maintain fiscal stability going forward has resulted in the removal of our negative outlook”, said Middle Township Business Administrator Connie Mahon. “This administration will continue to negotiate fair, fiscally responsible union contracts, manage future debt, increase the collection of taxes, improve our cash and reserve levels and follow sound business practices in order to give us a strong financial position for future years.”
Moody’s report also details the advantages of Middle Township’s moderately sized coastal tax base along with its low debt burden with manageable future borrowing plans. Moody’s suggests that Middle Township’s bond rating could be further improved with a sustained trend of structurally balanced operations that improves the Township’s financial position along with a growth of the Township’s tax base.
For additional information, please visit www.middletownship.com.
Cape May – Governor Murphy says he doesn't know anything about the drones and doesn't know what they are doing but he does know that they are not dangerous. Does anyone feel better now?
