HILLSBOROUGH: Republicans say S&P ranking validates fiscal stewardship

Hillsborough Republican candidates Gloria McCauley and Doug Tomson say they "strongly believe that a key driving principle for municipal officials is to be a judicious and prudent steward of municipal tax dollars."
They claim their "businesslike approach" has made Hillsborough "one of the most efficient municipal governments in our region."
They say their budget philosophy and actions were validated this year by Standard & Poors, when the municipal credit rating agency raised Hillsborough’s credit rating by two notches, to a rating of AA+. Higher credit ratings, among other things, usually result in lower interest rates on future borrowing.
The Republicans cite S&P’s rationale for the 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.
They quote S&P’s commentary: "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."
Mayor Tomson said, "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."
Republicans said they were proud of the credit rating and what they see as validation of "our strong fiscal discipline."
They pledged to continue the "businesslike approach to government and to provide prudent stewardship of every tax dollar."
The Republicans say they follow a philosophy that all spending must be scrutinized to determine if the expenditure is necessary.
"This review process has resulted in improved efficiency that limits the size and cost of local government," their statement said. "As a result, we have kept spending low so that the municipal government portion of your property taxes accounts for only 14 percent of your total bill."
In 2014, the Township Committee adopted a municipal budget with total spending below the 2 percent mandatory cap — without taking any allowable exceptions that would lead to spending over 2 percent tax levy. It was the fourth consecutive year staying under the cap without taking exceptions, they said.
Exceptions include such items as pension obligations and emergency appropriations — so they would have been easy to take, said the GOP.
"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," the GOP statement said. "However, staying true to our principles, once again, we did not."
"Per capita spending in Hillsborough is the lowest of all of our neighboring towns," said their position paper. "Our full-time employee base has been reduced by nearly 13 percent over the past 12 years, yet we continue to deliver on services residents need and expect."
Republicans says they follow a "pay-as-you-go" approach to capital spending and refuse to borrow for routine capital improvements and operating expenses. An early debt repayment program has led to reduced financing costs, they said.