A Montgomery County municipality has received "fabulous news" about its credit worthiness from Standard and Poor's, the financial services company which publishes financial research and analysis on stocks and bonds.
This means Lansdale is thought of as a low credit risk municipality.
According to Ed Murray of Boenning and Scarttergood Borough Financial Advisors, very few municipalities obtain an AA- rating form Standard's and Poor's, but the Borough of Lansdales's municipal bond rating has been upgraded from an A+ to AA-minus, thus qualifying the borough's bond ratings as high grade.
With the upgraded bond rating, the borough will not be required to purchase bond insurance when procuring bonds, thus lowering the borough's cost of purchase.
The upgrade also provides the borough a lower interest rate which will save costs over time, according to Borough Administration and Finance Chairman Denton Burnell.
Burnell credits the borough's staff and management team for their leadership and excellent work.
He also acknowledged the role of council members past and present who made the implementation of financial practices a real priority for the borough.
He singled out Dan Dunigan, for his leadership on the Administration and Finance Committee, who positioned the borough properly to receive the ratings upgrade.
Burnell says the stable outlook of the bond ratings reflects the expectation that the borough will maintain a very strong reserve position as well as a manageable debt burden that provides rating stability.
He says the borough anticipates the use of borrowing as a source of funding for critical improvements to infrastructure.
Council President Jason Van Dame says the additional investment is necessary so as to position and enhance Lansdale Borough as a high performance community focused on improving existing services and creating a foundation for future mobility as well as economic growth.
Bond ratings are forward-thinking opinions about credit risk and express Standard and Poor's opinion about the ability and willingness of an issuer to meet its financial obligations in full and on time.