MARGATE - A recent decision by S&P Global Ratings assigned its short-term SP-1+ rating to Margate City's $20 million general obligation bond anticipation notes (BANs). At the same time, S&P Global Ratings affirmed its AA+ long-term rating on Margate's existing debt.
"This is all good news for Margate residents and property owners who will continue to pay lower interest rates than property owners in many other municipalities," Acting Administrator Richard Deaney said in a release.
The rating report stated Margate's outlook is stable, and the city has increased its reserves to insulate its financial position against unexpected events, with consistent positive fiscal performance enabling this trend.
The financial review report is largely for potential investors of Margate's notes and bonds. It reads in part, The City's budget has remained about stable over the past five years, with conservative budgeting for both the revenues and expenditures facilitating year over year surpluses."
In a summary statement the report state that Margate maintains disciplined and reliable financial management policies and planning and (has) a strong institutional framework score."
The $20 million bank notes consist of $11,950,000 of general improvement notes, $5,400,000 water and sewer utility notes and $2,650,000 of public school notes. The city debt position is approximately $45.8 million excluding the historically self-funded water and sewer utility debt, which S&P Global considers a manageable debt burden low as a percentage of market value.
Deaney credited Margate Chief Financial Officer Lisa McLaughlin for her understanding of financial markets and her ability to assemble quality professional consultants to help manage the city's debt to maximize opportunities to keep interest rates low by continually seeking to raise the city bond rating.
"Margate is in a strong financial position because the Board of Commissioners has high performance expectations, which are clearly communicated and met by a competent professional management staff," he said.
