def #159 08/08/07

CREDIT RATING HOUSES PROVIDE GOOD GRADES TO OCEAN COUNTY; STRONG FISCAL MANAGEMENT HIGHLIGHTED

TOMS RIVER - When the Ocean County Board of Chosen Freeholders plan to build new roads, bridges or facilities, financing for these items comes with low interest rates based on favorable credit ratings.

"This Board will continue to make investments in our County that will be affordable to our taxpayers," said Freeholder Director John P. Kelly. "Because of consistent budget practices and fiscal control, this Board can invest in capital improvements and the county's infrastructure without any negative affect on our residents."

According to Freeholder John C. Bartlett Jr., who serves as liaison to the county's Department of Finance, Ocean County recently sold $41.8 million in bonds that will be used to finance a number of capital projects including $13 million for the county's new Southern Ocean County recycling center and government complex in Stafford Township; $4,750,000 toward the expansion of the Ocean County Jail, Toms River; $6.7 million for various parks' projects including the new Jakes Branch County Park in Beachwood and $8.6 million for various road and infrastructure improvement projects.

The successful bidder for the bonds was LaSalle Financial Services Inc., headquartered in Chicago, with a interest rate of 4.29 percent. Seven firms bid on the bonds during an Internet auction providing 17 competitive bids in a span of 15 minutes.

Bartlett noted that Ocean County received high marks from international bond rating agencies. Fitch Ratings provided the county with a AA+ rating and Moody's ranked the county as AA1.

"This is our financial report card," Bartlett noted. "And we have ranked at the top of our class."

In its report on the county's finances, Fitch, an international bond-rating agency, stated "The AA+ rating reflects Ocean County's continued strong financial flexibility, represented by conservative budgeting, robust current fund balances, healthy liquidity, and substantial pay-as-you-go Capital spending."

Specifically the report notes that the audited 2006 operating results include another surplus, pushing the unreserved current fund balance to $55 million or 16 percent of spending. While the county has recorded minor drawdowns in some years, pay-as-you-go capital spending has increased annually and is budgeted at 10.9 percent of current fund spending in 2007. The $344 million 2007 current fund budget reflects a 5.7 percent increase over 2006 spending but revenue growth continues to outpace rising expenditures, demonstrating structural balance.

"Critics of county government have chastised this board for our surplus and our pay-as-you-go policy," Bartlett noted. "However, according to the rating houses, these are two key reasons the County fares so well financially."

The Fitch report also noted that significant flexibility, coupled with the county's conservative financial management practices should offset some potential future pressures related to public safety.

"It's very important to me in planning the expansion of the Ocean County Jail that this expenditure would not have a negative affect on the county's finances," said Kelly, who serves as Director of Law and Public Safety. "As a result of good planning and keeping an eye toward the future, this Board will be able to keep the county tax rate low, continue to provide award-winning services and make the necessary infrastructure investments needed for the future."


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