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Brick's Credit Rating is Maintained

Moody's gives Brick an AA2 rating

Moody’s Investors Services has maintained the town’s Aa2 rating on $160.9 million of outstanding debt and has assigned the same rating to $30 million in GO bonds.

Moody’s has also assigned a MIG1 (Municipal Investment Grade 1) rating on $676,622 in township short-term bonds and notes.

The company's Aa2 rating is assigned to obligors who are "judged to be of high quality and are subject to very low credit risk."

It is their third highest rating on long-term debt. The MIG1 rating is the highest rating of short-term municipal debt.

In a rating document, the company cited "demonstrated success in cutting expenses" as a financial strength.

The company's workforce is down significantly over a decade ago, and the current township council has proposed in town.

Officials say the positive ratings will help increase market access when issuing bonds and notes and will lead to lowered borrowing costs.

"Just like a citizen who gets lower APR on credit cards for their strong credit rating, the township will get lower borrowing costs when we need to issue bonds and notes for projects and operations," said Business Administrator Scott Pezarras, in an e-mail.

In a statement, Mayor Stephen C. Acropolis say the ratings "show the continued financial strength of the municipal government."

“Moody’s recognizes the steps we have taken to cut expenses and acknowledges they are working," said Acropolis. "These include reducing the size of the workforce, negotiating labor agreements that are more affordable for taxpayers and creating revenue streams." 

"They don’t concern themselves with headlines or what is being said in online forums," Acropolis said. "They concern themselves with the facts and the finances. They look at us through the eyes of investors and these ratings show that they think we are doing a good job."

Upcoming capital projects for which the township is expcted to issue bonds or notes include the switch to automated recycling collection, regular road improvements and bulkhead improvements.

Under state law, municipalities may not borrow the support their operating budgets.

JD September 13, 2012 at 12:37 pm
Holy crap...
160 million in debt.... for a 85million budget... Total debt was about 110million a few years ago!!!
Jerry Belle September 13, 2012 at 12:42 pm
To receive the second best rating is nice, but improving upon that rating should still our goal. The highest rating - Aaa would indicate that our obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. It would also be nice to see the #2 improve to a #1 - The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.
JD September 13, 2012 at 12:57 pm
Toms River has total debt of 80million and a budget of 100million.
They have a higher rating because of lower total debt.
JHill September 13, 2012 at 01:08 pm
Wait what?
We owe 160 million dollars and that is a good thing? We should have zero debt. STOP SPENDING!!! This country is going to implode from the trillions of dollars in debt we owe on the local/state/federal level. I hope everyone is ready for a 50% tax rate within ten years.
JHill September 13, 2012 at 01:20 pm
Sounds about right. Our leaders seem to think they are business saavy:
15 million when we got into the boating business and opened a Marina/Park 8 million when we went into the real estate business bought a Foodtown supermarket 34 million dollars when we got into the energy business and decided to build a solar farm Thank god we didn't get into the Hockey/Ice Rink business because that would have been another 10 million dollars. 1 million dollars a year for friends/family jobs for all of these schemes to be run. Jobs most likely given out to the most ineptly qualified people who couldn't get a job on their own and had to lean on a relative to get a handout job. Please just legislate and stop trying to come up with moneymaking schemes for us. Private businesses do that just fine. Thanks.
JD September 13, 2012 at 02:50 pm
Jhill...
I wouldn't say Zero debt... But the total debt should not exceed the total budget number.... So, Brick total debt should be at about $85million Now, the solar project is a pass through... hopefully they have started recieving payments from the solar company... But, Brick is still has about 40million debt it has to unload!!! Stop capital project unless they are paid for out of the operating budget... in other words, stop getting loans.... for anything. It will take about 5 years to whittle the debt down if you stop taking out anymore loans... whittle down to 85million + solar... or about 120million total debt.
WMS826 September 13, 2012 at 03:01 pm
where is our own Marian Barry...Joe Scarpelli for mayor again...Curse you U.S. Attorney for destroying our town.
Joseph Woolston Brick September 13, 2012 at 07:23 pm
160 Million in debt, No wonder they want to put red light cams all over Brick. $afety first!
WMS826 September 14, 2012 at 12:48 am
I swear I would vote Scarpelli again in a minute. He stole 5 thousand, I'll take that over this mess any day.
George September 15, 2012 at 02:41 pm
This is disgusting
George September 15, 2012 at 02:47 pm
This Mayor is going to bury this town in debt.
Mrgrumpass September 18, 2012 at 12:26 pm
We have to give credit where credit is due, in the last budget that council passed they found $150G’s in magazine subscriptions to cut! Their new thing is this shell game with dissolving departments and combining the duties with other departments and firing the old managers and hiring new managers to do the same POOP the old dept. heads did, it gives me diarrhea!
Slippery Slope September 18, 2012 at 12:54 pm
said Township Administrator Scott Pezarras. “My father and teachers always told me to leverage, if you can buy things with others people’s money, then do it.
This is why we are broke

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