The following is Ocean City Mayor Jay Gillian’s weekly update to citizens posted on Friday, August 8.
Dear Friends,
Earlier this week, the city received notice that Standard & Poor’s Ratings Services has assigned its ‘AA’ long-term rating to Ocean City’s series 2014 general obligation bonds. At the same time, Standard & Poor’s affirmed the ‘AA’ long-term rating on the city’s outstanding general obligation debt. The ‘AA’ rating is one of the top ratings a municipality can receive. This is outstanding news for Ocean City.
City Council and the City’s leadership team have been diligent in developing responsible budgets and reasonable reserves. Our capital plan is aggressive yet responsible, and we have shown we are financially prepared for emergencies. These actions have resulted in maintaining our outstanding bond rating.
Some of the highlights of the report include:
- Strong management environment and good financial management policies
- Very strong budgetary flexibility with available reserves expected to remain above 8 percent of current fund expenditures and excess tax levy capacity
- Strong budgetary performance with a history of stable operational results
- Very strong liquidity, providing cash to cover both debt service and expenditures
- Very weak debt and contingent liabilities profile
This rating change provides the City improved financial opportunities and makes us more attractive in the financial markets. It should allow us to benefit from improved interest rates. It is certainly comforting to know that following diligent research, well respected outside agencies repeatedly rate our finances among the best. I would like to offer congratulations to City Council and the city team.
I hope everyone has a great weekend.
Warm regards,
Jay A. Gillian
Mayor
