JACKSON – Township officials were pleased to learn that once again; S&P Global Ratings assigned its ‘AA+’ long-term rating to Jackson Township, New Jersey’s series 2020 general obligation (GO) bonds.
At the same time, they affirmed the township’s ‘AA+’ long-term rating on the township’s existing General Obligation debt.
“As Mayor of the third largest municipality in New Jersey, I’m proud to report to our taxpayers that Standard and Poor’s has just reaffirmed our fantastic AA+ financial rating” Mayor Michael Reina said.
“This renewed Standard and Poor’s financial rating of AA+ is an excellent accomplishment. This is the result of a collaborative partnership between the Mayor and Council dedicated to delivering positive and measurable results to the community. I commend Mayor Reina and his Administrative staff on consistently presenting this Council with fiscally sound budgets,” Council President Barry Calogero said.
Calogero added, “we proudly boast our outstanding rating as one of the most fiscally responsible municipalities in Ocean County according to our independent auditor.”
Jackson is the state’s third-largest municipality by land mass and encompasses approximately 100 square miles in northwest Ocean County. It lies approximately 60 miles southwest of New York City and 50 miles east of Philadelphia.
The township is primarily a residential community, with residential property accounting for 88% of 2019 assessed value (AV), but it does maintain a sizable commercial and industrial presence at 9% of 2019 AV according to township officials.
Several economic development projects, many of which are commercial, are in various stages of construction and expected to add to the tax base over the near to moderate term.
Standard and Poor’s took note of one of the largest of the projects slated for construction, Adventure Crossings USA; a sports complex destination with hotels and restaurants included.
“This over $500 million project, is expected to be completed, in stages, over the next four years; and is expected to bring in substantial additional revenues over time. We expect this will contribute to tax base growth.” The report stated.
It also stated, “currently, Six Flags Great Adventure Amusement Park remains among the township’s leading employers and anchors the economy.”
Jackson benefits, according to S&P, “from good access to broader employment bases as well as ongoing economic development, which has contributed to tax base growth and the maintenance of economic metrics in line with its peers.
Financial performance remains strong benefitting from conservative budgeting practices and several formal fiscal policies, which have translated into sizable increases in reserves, according to the report.
The report also states that Jackson has a very strong economy, with access to a broad and diverse metropolitan statistical area (MSA); a strong management, with good financial policies and practices under our Financial Management Assessment methodology; strong budgetary performance, with an operating surplus in the current fund in fiscal 2018; plus a very strong budgetary flexibility, with an available fund balance in fiscal 2018 of 27% of operating expenditures.
The report also notes Jackson’s “strong liquidity, with total government available cash at 44.5% of current fund expenditures and 5.1x governmental debt service, and access to external liquidity we consider strong.”
Fiscal 2019 is projected to close with a roughly $1.9 million operating surplus; bringing available reserves to an estimated $13.4 million or just under 30% of expenditures.
Work on the township’s 2020 budget is underway with presentation and adoption expected early in the spring.
“We don’t foresee any issues that would cause budgetary pressures and, as a result, we (and S&P) do not expect the township’s budgetary performance to weaken over the near term. This is great news for taxpayers who expect and demand that we hold the line on taxes,” Calogero said.
Mayor Reina added, “Jackson Township is a growing, suburban community offering an ideal environment in which families, as well as businesses, can grow and prosper. One of New Jersey’s largest municipalities (covering over 100 square miles and inhabiting nearly 60,000 residents), Jackson Township boasts an excellent public-school system and first-rate recreational facilities with additional improvements planned for 2020.”
The mayor described the community “with its beautiful tree lined neighborhoods, is known by many as the “Gateway to the Jersey Shore,” and is less than an hour away from New York City and Philadelphia. It is also home to the famous Six Flags Theme Parks. Jackson Township, a great place to call home!”
