The Mayor and Council are proud to announce that S&P Global Ratings recently assigned its 'AA' long-term rating to the Borough of Dumont citing the following:
- Strong Budgetary Performance
- Strong Institutional Framework
- Overall net debt is low at 2.5% of market value, which is a positive credit factor
- Budgetary flexibility has remained strong over the past three fiscal years
On April 7, 2020, the Borough Council approved two resolutions which will continue our fiscally responsible long-term Debt Management Plan. The actions taken by the Governing Body provides the Borough with the opportunity to solicit bids from financial institutions in the bond market in connection with the issuance of 15.5 million dollars in long-term bonds.
- The Borough currently has financed previously authorized capital ordinances with the issuance of Bond Anticipation Notes. The Notes have a maturity of one year, and are subject to market conditions upon renewal. The Notes total $15.5M and pertain to seven different ordinances. The current net debt is $39,279,622.
- The resolution does not authorize any additional monies that can be spent in the ordinances named. The plan discussed with the public in 2019 was to explore the possibility of converting these Notes into long-term bonds. The major advantages of issuing serial bonds would be to take advantage of the low interest municipal bond rates as well as locking in the rate for 25 years.
- Despite the overall increased volatility of the financial markets during the COVID-19 pandemic, the long-term municipal AAA MMD Interest Rate Index remains significantly below its 10-year average.
- If the Borough rejects the bid or decides that the market conditions are not favorable for the sale of long-term bonds, the existing Notes will be renewed when they mature in May, 2020.