In a time of financial downfalls and small national economic depression, many area communities are struggling to get their debts in order and budgets passed.

That is not the case for the Borough of Tamaqua.The borough was given a long-term 'A' rating recently via a 2012 general obligation bond given the Standard & Poor's Ratings Service."The importance of this rating shows we are able to consolidate our outstanding debt, which involved the purchase of an aerial fire truck, an outstanding loan we invested via Municipal Energy Managers and matching money for the Owl Creek Dam Project," said Chris Morrison, mayor of Tamaqua."The 'A' rating helped the borough bring together $3 million dollars to consolidate these loans."Over the next 20 years, the Tamaqua borough will save just short of $300,000 on interest payments alone," Morrison added.Part of the seven-page report states that the rating pertains to the borough's strong reserve levels as compared with its operating expenses, diverse tax base and favorable debt profile. Strengths are offset by Standard and Poor's opinion of the borough's adequate income levels and the county's low wealth levels.The report, dated June 15 of this year, also lists Tamaqua's outlook as stable."The stable outlook reflects our opinion of the borough's overall financial performance, which is characterized by its strong reserves and low debt profile," said Steve Tencer, credit analysis, Standard & Poors."While the reserve levels are strong as measured against the expense base, the balance stands at less than $400,000, which can provide limited flexibility for large, unforeseen expenses," Tencer added."Despite the challenging economic times we faced for the past three generations, Tamaqua continues to maintain a strong financial base. This rating certainly means it is less expensive to borrow funds for projects like the Owl Creek Dams but, more importantly, it means investors have confidence in Tamaqua's finances and future," said Micah Gursky, president, Tamaqua Borough Council."Tamaqua Council and staff have made tough decisions over the years, but those tough choices will help ensure that Tamaqua is financially stable. We want residents and investors to know that the community's finances are stable," said Gursky.Tamaqua borough, with a population of 7,107 in 2010, encompasses approximately 9.8 square miles of land."Tamaqua has always been vigilant and frugal, yet progressive, when it comes to fiscal matters," said Rep. Jerry Knowles (R-124th), a past Tamaqua Borough councilman and mayor. "I give them credit for how they manage borough finances and congratulate them on their A ratings."After posting an operating surplus in the 2009 fiscal year, followed by an operating loss in fiscal 2010, unaudited statements indicate that the borough will post a small operating surplus for 2011. The borough maintains its records on a modified cash basis. The 2012 budget calls for a 3.2 percent reduction in expenses, and does not rely on the use of any reserve funds.Continuing, the report states, "The unaudited results for fiscal 2011 indicate that the borough has a 10.4 percent ratio of available reserves to expenses. While the ratio is a figure we consider strong, the nominal amount is only $358,000. The 2012 budget is balanced and does not include the sale of capital asset (the community center, aka Mohn Building), which is expected to increase reserves by $178,000. Should this occur, the reserve-to-expense ratio would increase to 16 percent, a figure we consider very strong."Standards & Poors states in the report, "The borough has flexibility, in our opinion, with respect to tax rates. The tax rate was increased to 17.25 mills from 15.25 mills in fiscal year 2010, and has remained at 17.25 since that increase.""The ongoing efforts to revitalize Tamaqua's downtown to attract new employers and good paying jobs to our region is a tribute to the hard work of numerous job creators, downtown advocates and associations who have made Tamaqua the strong community it is today," said Sen. Dave Argall (R-29th). "I look forward to working with the borough council, countless volunteers, entrepreneurs and developers on how to continue to make Tamaqua an even better place to live, work and raise a family.""We (Tamaqua Borough Council) are always looking to do things to tighten up our debt and save on interest," added Morrison. "The council has been very diligent with doing that."Kevin Steigerwalt, Tamaqua borough manager, said a copy of the bond report is available at the borough office.