News Flash

Administration & Finance Committee
June 12, 2014

Bond ratings are forward-thinking opinions about credit risk and express Standard & Poor’s opinion about the ability and willingness of an issuer to meet its financial obligations in full and on time.  These ratings are important as they tell us and others about the financial condition and management of Lansdale.  Based on a recent financial review by Standard & Poor’s, the Borough of Lansdale’s Municipal Bond Rating has been upgraded from an A+ to AA- qualifying our ratings as ‘High Grade’.  “This is fabulous news, very few municipalities obtain an AA- rating from Standard & Poor’s,” reports Ed Murray of Boenning and Scattergood, Borough Financial Advisors. 

With this upgraded Bond rating, the Borough will not be required to purchase bond insurance when procuring bonds, thus lowering the Borough’s cost for purchase.   Additionally, the upgrade provides the Borough a lower interest rate which will save costs over time. “Clearly much of the credit for this accomplishment belongs with our staff, starting with Timi Kirchner’s leadership and extending to the excellent work of Brian Shapiro and the entire management team.  This change is evidence of their commitment to continually improving the Borough’s financial practices,” says the Borough’s Administration and Finance Chairman Denton D. Burnell. “I would be remiss, however, if I did not mention the contributions of Council members both in the recent past, and present, who made the implementation of those financial practices a real priority for this Borough.  While they all certainly deserve credit, I would like to single out Dan Dunigan in particular for his leadership on the Administration and Finance Committee, which positioned us properly to receive this rating upgrade.  While I have the privilege of reporting this good news, it was the hard work of those, like Dan, who preceded me that brought us to this point.”

The stable outlook of the bond ratings reflects the expectation that Lansdale will maintain a very strong reserve position as well as a manageable debt burden that provides rating stability.  As part of the Borough’s Capital Improvement Plan, the Borough anticipates the use of borrowing as a source of funding for critical improvements to infrastructure, so there is a vested interest in receiving this upgrade.  “We, as a Council, recognize that additional investment is necessary to 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,” says Borough Council President Jason Van Dame.  

Bond Rating