Dear Marlboro Resident:
I am pleased to report that Moody's Investors Service recently reaffirmed the Township’s AA financial bond rating. This is a direct reflection of Marlboro’s conservative approach to spending and our overall fiscally responsible budgeting process. In contrast, many municipalities within New Jersey have had their bond ratings lowered during this protracted economic downturn.
In order to pay for capital projects such as road and park improvements, the Township must obtain financing through the issuance of bonds. As part of the process, the Township’s financial position and management team are critiqued by a major independent bond rating service such as Moodys or Standard and Poors. After a presentation made by the Township to ratings analysts, the agency releases a formal report. This formal report serves as a critical source of disclosure to the financial community, and is an important determining factor in the demand for the Township’s bonds.
In its report, Moodys responded favorably to the difficult decisions made by the Township during the past two budget cycles. Specifically the reported highlighted:
- “Management significantly cut recurring expenditures in 2009 through layoffs, furloughs, closing on Fridays, and cutting 15% from all discretionary line items. These cuts are expected to benefit the township in 2010 through annualized savings of $1.2 million.”
- “The dissolution (of the MTMUA) is expected to yield annual operating savings of at least $750,000.”
Ultimately, a higher bond rating translates into a lower cost of financing for capital improvements for taxpayers.
Moodys' affirmation of the Township AA bond rating is especially good news in light of the statewide economic climate and the challenges facing New Jersey local governments.
I am proud that we have come together as a community to make the challenging decisions required in the current environment, and that the financial community has formally recognized these efforts. I know that times are difficult and we will continue to pursue a fiscally conservative approach to our local finances by doing everything possible to reduce the cost of the high quality services residents expect and deserve.
Very truly yours,
Jonathan L. Hornik, Mayor