If you're following the state of bonds in NJ (and who isn't!?) you may have heard the good news for Collingswood - our bond rating from Standard and Poor's came back in mid-February and Collingswood maintained its AA- status with positive comments across the board from the review committee. AA- is considered a "very strong rating."
Why is a good rating important? A municipal bond credit rating represents the credit worthiness of government bonds. The ratings are used by investment professionals to assess the likelihood our debts for capital projects and other costs will be repaid. Just like the budget in your home, this allows us to borrow money at a better rate, finance projects and otherwise keep things running at a lower cost.
In their review S&P noted strengths like Collingswood's strong economy, strong management, strong budgetary performance, very strong budgetary flexibility, and very strong liquidity. In other words we are ticking all the boxes to be financially stable for the long term. They report Collingswood's "mostly residential tax base has grown consistently over the past couple of years, which, together with a strong management team, has allowed the borough to post surpluses and build up [surplus] fund balance."
For anyone that recalls, we had a grievous miscommunication with Moody's a few years back that junked our bonds and caused a lot of headache here in town. (Spoiler alert, they reversed their decision after we strenuously opposed their review - because it was thoroughly and completely wrong.) News of a continued "stable" outlook is a reminder that we are, and always have been, doing things with good financial sense.
Read the report here.
