The Southeast Morris County Municipal Utilities Authority (SMCMUA) is bursting with financial pride after Moody’s Investor Services assigned a rating of Aa3 to SMCMUA’S $16 million Water Revenue Refunding Bonds tentatively schedule for sale on July 11.

The Water Refunding Bonds, Series 2001 are expected to provide a net present value savings of over 6 percent or about a million dollars for ratepayers over the life of the bonds.

Moody’s anticipates that SMCMUA will "continue a trend of conservative management, forward planning and sound financial operations" as part of its rating analysis.

SMCMUA Chair Mary E. Dougherty was elated with the news of the high rating. "Ratepayers will be reaping the rewards of the Board’s on-going efforts to control costs and provide for system upgrades. It’s good news for everyone!" Dougherty said.

Executive Director Harry G. Gerken who has guided SMCMUA’S day-to-day operations for over 15 years was also delighted about the strong rating. "It’s highly unusual for pure revenue bonds to achieve Aa rating because these bonds are not guaranteed by any taxing authority. I think we may be one of just a few Authorities in the New Jersey that is rated so highly." Gerken said.

Officials believe that the high credit rating may avoid the cost of purchasing bond insurance which typically provides investors with Aaa grade investment bonds. "SMCMUA’S customers will benefit by either avoiding the insurance premium or seeing the premium greatly reduced because of our credit worthiness." Gerken noted. Municipal bond insurance is available from a number of companies who, like every insurance company, charge premiums on the basis of relative risk.

SMCMUA provides water service to Morristown, Morris Township, Morris Plains, Hanover Township with partial service in Harding and Mendham Townships. On a typical day, over 100,000 people rely on SMCMUA for their potable water needs.

"We are all proud that the financial community thinks so highly of our operation. More importantly, we determined to continue the responsible policy making that pays long term dividends in the form of relatively stable water rates to our customers." Dougherty concluded.