We have worked hard in Hillsborough to reduce spending. Today we spend less than we did six years ago and have been recognized by S&P for our efforts. Learn more about our fiscal practices below. In Hillsborough, we, and our colleagues on the Township Committee, strongly believe that a key driving principle for municipal officials is to be a judicious and prudent steward of municipal tax dollars. That is why it was so gratifying to see our budget philosophy and actions validated by Standard & Poors (S&P), a premiere municipal credit rating agency, earlier this year. In fact, S&P raised Hillsborough’s credit rating by 2 notches, to a rating of AA+. S&P’s rationale for this rating, which is only one notch below the top possible rating of AAA, is that Hillsborough municipal government is a financially stable, low risk, high quality organization. According to the statement issued by S&P, “The stable outlook reflects our view of the Township’s consistent financial performance and economy, which is supported by standard management practices. This rating is further supported by the Township’s very strong liquidity, strong budget flexibility, and adequate budgetary performance”. This rating was not achieved by happenstance. This year, we once again delivered a municipal budget with total spending below the spending levels of 2008. Keeping spending down requires a philosophy requires that all spending must be scrutinized to determine if the expenditure is necessary. This review process has resulted in improved efficiency that limit the size and cost of local government. As a result, we have kept spending low so that the municipal government portion of your property taxes, accounts for only 14% of your total bill. In addition, for the fourth consecutive year, we have adopted a municipal budget with total spending below the 2% mandatory cap. As has been our practice, we also refused again this year, to take any allowable exceptions which would lead to spending over the 2% tax levy cap. These exceptions include items such as pension obligations and emergency appropriations. Given the impact of the winter season regarding snow removal, which cost the township more than $300,000 over the appropriated snow budget, we were certainly entitled to take the emergency allowance. However, staying true to our principles, once again, we did not. As a result of our business like approach to government, Hillsborough remains one of the most efficient municipal governments in our region. Per capita spending in Hillsborough is the lowest of all of our neighboring towns. Our full-time employee base has been reduced by nearly 13% over the past twelve years, yet we continue to deliver on services residents need and expect. We also have continued to hold down taxes by following a “pay-as-you-go” approach to capital spending and we refuse to borrow for routine capital improvements and operating expenses. Furthermore, we have implemented an early debt repayment program leading to significantly reduced financing costs. We are very proud of the excellent credit rating we have received from Standard & Poors and that they have validated that our strong fiscal discipline has led to our AA+ rating. We and our colleagues on the Township Committee pledge to continue our businesslike approach to government and to provide prudent stewardship of every tax dollar.
Posted on: Sun, 02 Nov 2014 21:30:46 +0000
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