Fitch Rates $30MM Monmouth County, NJ GO Bonds `AAA'

Business Wire, July 7, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--July 7, 2000

Monmouth County, NJ's $30 million general obligation bonds, series 2000, are rated `AAA' by Fitch. The bonds are to be sold on a competitive basis on July 12. The county's `AAA' rating on $171.7 million outstanding general obligation bonds is affirmed. The ratings on $33.8 million outstanding county-guaranteed equipment lease revenue bonds as well as $35.9 million correctional facility and $17.2 million recreational facility bonds issued through the Monmouth County Improvement Authority are also affirmed at `AAA.

Proceeds from the $30 million general obligation bonds will finance various general county improvements and capital projects at Brookdale Community College and the Vocational Technical School. The bonds are secured by the county's full faith and credit pledge and are payable from real property taxes without limitation.

The `AAA' rating reflects Monmouth County's solid financial performance and increasing flexibility, moderate debt levels, and growing and diversifying economy. Modest revenue growth and expenditure controls continue to help maintain the county's strong financial position. The county tax base remains strong and in 2000 the county reported 6% growth in assessed valuation over 1999. The county continues to review revenue options for financing of its landfill operations in the long-term and although general capital needs are sizable, debt levels should remain moderate given very rapid amortization.

Monmouth County is located along the northern Atlantic shore of New Jersey, 50 miles outside of New York City. The county's population continues to grow, increasing 10.5% since 1990, to an estimated 611,444. Job growth kept pace during this time period, growing 1.0% per year. Overall, employment, while still concentrated in health care and retail, is diversifying, with significant gains in the construction, trade, and finance sectors. The county's property tax base has expanded steadily but remains primarily residential at 80%. Assessed value (AV) grew an average of 1.75% annually since 1996 with two significant growth years in 1999 and 2000. Income levels are above average. Per capita personal income, at $34,383 in 1998, is 104% of the state average and 131% of the national level. The county's unemployment rate remains a low 4%, below the state's 4.6% and the nation's 4.2%.

The county's financial position is excellent. The fiscal 1999 current fund balance of $54.1 million is 16.5% of expenditures and represents a 24% increase over 1998. Like all counties in New Jersey, Monmouth County is guaranteed 100% property tax remittance by the municipalities and current tax revenues represent 60% of the county budget. For the 2000 budget, the county decreased the property tax rate by $0.09 to $4.27 per $1,000 AV and is projecting a 3.9% increase in tax revenues.

The county's debt burden is moderate, with overall debt at $1,863 per capita and 2.41% of market value. Debt service expenditures are 11.3% of current fund expenditures and significant capital needs are mitigated by rapid debt amortization of 81% in 10 years.

Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA and Duff & Phelps Credit Rating Co., provides ratings for Financial Institutions, Insurance, Corporates, Structured Finance, Sovereigns and Public Finance Markets worldwide.