With the turbulence that financial markets and government revenues have seen these past few years, residents frequently ask how the Borough can manage to pay or capital improvements. With nearly $10 million in capital projects projected, the Borough will have to finance a good portion, if not all, of this amount. However, the Borough recently received some good news that will assist them in this venture. Through years of incremental gains, newly established financial policies, and sound management practices, Standard & Poor’s has upgraded the Borough’s credit rating from ‘A’ to ‘AA-minus‘. It listed the Borough’s outlook as stable, which means analysts believe the Borough’s rating is unlikely to change anytime soon. It should be noted that this increase in the Borough’s credit rating did include the above mentioned anticipated $10 million Bond Note to fund the many projects that the Borough is undertaking. S&P also indicated in their report that “the Borough’s budgetary flexibility is very strong, with available reserves above 15% of expenditures for the past several years.” This is quite an accomplishment for a community of our size and demography, and it could lead to cost savings through lower interest rates on any new borrowing. To have our Borough’s credit rating upgraded in this climate speaks volumes about the positive direction that we are heading. The Borough is currently exploring other funding options associated with the much needed new police and municipal complex as well as ways to attract economic development. The 2-point upgrade in the Borough’s credit rating, as well as the Council’s willingness to invest in the Borough, is sure to position our community favorably with such outside investors.
George Zboyovsky, PE