Andrew Martins, Managing Editor
Investment experts at two of the nation’s top bond rating agencies affirmed that Somerset County continues to enjoy a triple-A rating following the recent sale of county college and general improvement bonds.
“We’re very pleased that both Standard & Poor’s and Moody’s reaffirmed Somerset County’s long-held triple-A bond ratings,” Freeholder Director Peter S. Palmer. “Our success in securing such a favorable interest rate is due once again to our sound financial management.”
According to officials, the 15-year bond sales took place on July 20, with an interest rate of 2.33 percent. The successful buyer was Wisconsin-based Robert W. Baird & Co.
The sale included approximately $17 million in bonds for various county road and bridge projects, $1.5 million for major heavy equipment and trucks, $1 million for 911 Communications Center equipment, $1.2 million for salt domes and approximately $1.4 million for various other bonded expenditures.
It also includes $2.9 million for Somerset County’s share for various capital repairs to buildings and classrooms at Raritan Valley Community College and construction of the college’s Workforce Training Center; under Chapter 12, the state pays half of these costs while Hunterdon County pays approximately 33 percent.
According to the Moody’s Investors Service, professionals felt the continued triple-A rating was justified, since the county’s “financial position will remain strong given management’s commitment to conservative budgeting and long-term planning.”
The company listed the county’s substantial and diverse tax base with a large corporate presence, very high income levels, low debt burden and strong financial management practices as main credit strengths.
Despite being almost 80 percent residential, Somerset County has a significant commercial sector, including pharmaceutical, telecommunications, financial and retail elements, according to the Moody’s report. There is ready access to New York City and the county overall has a 3.2-percent unemployment rate, lower than both the state and national levels.
Standard & Poor’s Ratings Services also affirmed Somerset County’s triple-A rating based on the county’s stable outlook and favorable debt position. S&P praised the county’s strong budgetary performance and flexibility and conservative budgeting practices, including its annually updated five-year financial projections, six-year capital improvement plan, and a cash management plan governing investments.
