Fitch Rates Monmouth County, New Jersey $38.6.MM GOs 'AAA'.

NEW YORK -- Fitch Ratings assigns an 'AAA' rating to Monmouth County, New Jersey's (the county) following issues:

-- $27,035,000 general obligation (GO) bonds, series 2005A;

-- $4,530,000 GO county college bonds, series 2005B;

-- $7,000,000 GO utility bonds, series 2005C.

The bonds are scheduled to sell via competitive bid on April 5. Series A bonds mature serially Jan. 15, 2006-2020; series B bonds mature serially Jan. 15, 2006-2015; and series C bonds mature serially Jan. 15, 2006-1017. Bond proceeds will fund general county, county college, and utility capital improvements. The Rating Outlook is Stable.

The 'AAA' rating reflects Monmouth County's solid financial management resulting in continued strong operations and financial flexibility, stable growth in its wealthy tax base, and low direct debt levels with rapid amortization. Monmouth County continues to experience positive employment growth and office vacancy rates well below the state average. Fund balances continued to grow in 2004 due to the county's conservative budget practices, expenditure controls, and healthy flow of revenue driven by a vibrant property tax base. The county's capital plan has expanded but remains affordable, and although primarily debt funded, debt levels should remain moderate given the county's conservative debt policies, including rapid amortization rates. The Rating Outlook is Stable.

Monmouth County is located along the northern Atlantic shore of New Jersey, 50 miles outside New York City. The 2000 census revealed an 11.3% population increase over 1990, and the 2003 estimate of 622,986 exceeded state growth trends. Overall, employment, while still dominated by health care and retail, is diversifying, with significant gains in the construction, transportation/ utilities, and finance sectors. The county's wealthy property tax base has expanded steadily and remains primarily residential at 82.3%. The assessable base grew a strong 8.6% annually over the past five years. Income levels remain strong, as indicated by the county's high market value per capita of $144,686 in 2003, up 35% in one year. The county's unemployment rate of 4.1% in January 2005 was below the state's 5.2%.

The county's financial position is excellent. The 2004 unaudited unreserved fund balance was $78.7 million, or 18.1% of expenditures. Overall, fund balances over the past five years have increased 7.2% on an average annual basis, supported by conservative budgeting and expenditure controls. Additionally, the strong housing market continues to boost revenues in the current fund, greatly mitigating any budget constraints due to decreased investment income and rising insurance costs. Like all counties in New Jersey, Monmouth County is guaranteed 100% property tax remittance by the municipalities, and in 2005, property tax revenues represented 69% of the county budget. The county maintains further financial flexibility through continued pay-as-you-go capital contributions, which averaged a healthy 3.5% of spending through 2005. Fiscal 2005 budget appropriations represent a manageable 4.7% growth rate over the 2004 budget and 3.8% above 2004 unaudited results.

The county's direct debt burden is low at $482 per capita and 0.33% of equalized value (EV). Debt levels are more moderate, on an overall basis, with debt per capita at $2,862 and 2.0% of EV. The county amortizes its debt very rapidly pursuant to county resolution. Amortization rates are actually above the 70% policy with 94% retired in 10 years. The six-year capital improvement program (CIP) totals $310.8 million; an increase of 19.3% over last year's CIP. The increased costs are associated with conservative assumptions regarding rising construction material costs. While the county plans to fund the majority of the CIP with bonds, direct debt levels should remain affordable.