Ocean County Maintains 'AAA' Bond Rating

Ocean County has sailed safely through the nation’s financial minefield with its AAA credit rating intact; and that on-again, off-again Aug. 25 bond sale designed to save taxpayers $1 million is on again.

The county’s freeholders had put off the sale as Congress fiddled with the nation’s debt ceiling, fearing the nation’s credit rating would drop and interest rates might rise as a result.

Instead, Freeholder John C. Bartlett Jr. said the county retained its AAA rating from Fitch and Moody, the rating agencies that also value U.S. credit that highly. So the outlook for a cut in interest charges in refinancing $32 million borrowed in 2004 and 2005, when the county had a AA+ rating, is still bright, Bartlett said.

In addition to the Congressional deadlock over increasing the debt ceiling, Bartlett said the recession has cut property values in the
county by more than 4 percent and reduced fees paid to the sheriff and county clerk.

Freeholder Director Joseph H. Vicari said officials have been forced
to make “some terrific cuts,’’ in county spending.

Bartlett said the rating agencies pointed to “seasoned management’’ in the county government delivering “prudent capital management practices.’’

They are satisfied with the county’s surplus, now about 9.25 percent
of the county budget, but their target is 10 percent, he said.

“That is the critical issue for the future,’’ Bartlett warned.

In addition to the $32 million in existing debt that will be refinanced, the county will borrow $26 million for road, bridge, and building projects now underway, while paying off a like amount of debt from the past, Barnett explained.

“We always prepared for a rainy day,’’ Vicari said.

“We’re in reasonably good shape,’’ observed Freeholder Gerry P. Little.