Office of the Mayor – West Windsor Township
November 1, 2011
FOR IMMEDIATE RELEASE
Contacts: Shing-Fu Hsueh, Mayor
West Windsor Township
West Windsor Township – Historic Low Interest Rates Prove Value of Triple-A Bond Rating
Mayor Hsueh reported that Standard & Poor’s (S&P) Rating Services has once again assigned its “AAA” long-term rating to the Township’s general improvement bonds with a stable outlook to the Township. The prestigious Triple-A rating is the highest available rating and it is shared by less than ten municipalities in the State of New Jersey.
“Today’s public sale of $6,100,000 General Improvement Bonds at an interest rate of 1.99% is a clear reflection of the strong “AAA” credit rating and financial management of the Township. Seven different bidders submitted 49 separate bids in an open electronic auction resulting in an unprecedented rate for 12 year bonds below 2%,” according to Mayor Shing-Fu Hsueh.
The S&P rating reflects the township’s diverse economy coupled with access to the broader employment bases of Philadelphia and New York City; very strong wealth and income indicators with historically low unemployment; consistently solid financial performance, characterized by very strong general fund reserves, and moderate overall debt burden on a market value basis, coupled with modest borrowing needs.
Credit rating is one of the most important factors in determining the final interest rate on municipal bonds in today’s market. According to Hsueh, “the benefit that we enjoy by funding our capital projects with the lowest finance rates available results in a savings of about $130,000 in interest over the life of the bond issue, which benefits our municipal budget and our taxpayers. I am proud that our sound long term financial planning has once again resulted in the S&P AAA rating. This enhances our property values throughout West Windsor Township and helps us continue to move forward in making this community a desirable place to live and raise a family.”
Throughout the rating and bond sale process, the Township received technical advice and guidance from the Township’s Financial Advisor, Phoenix Advisors, LLC of Bordentown, NJ; Bond Counsel, McManimon & Scotland of Newark, NJ; and Auditor, William Antonides & Company of Wall, NJ.
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