MARLBORO – Mayor Jonathan Hornik has reported that S&P Global Ratings reaffirmed its long-term rating to AAA on Marlboro’s general obligation (GO) debt and assigned an AAA rating to the township’s 2018 GO bonds. He said the AAA designation is the highest rating assigned to issues of debt.
“Marlboro’s credit remains the highest grade available in the marketplace,” Hornik said. “This means our taxpayers continue to benefit from the lowest possible costs for road, parks and recreation, and other capital improvements.”
In its report, S&P highlights Marlboro’s conservative budgeting, fiscal practices and low debt levels, according to a press release.
“This rating is a direct reflection of the township’s conservative budgeting, maintenance of and adherence to strong fiscal policies,” Hornik said. “The township’s balance sheet continues to improve due to conservative budgeting and strong operating results.”
S&P upgraded Marlboro’s credit rating to AA+ in 2015. In 2017, Marlboro’s credit rating was upgraded again, to AAA, the second credit rating upgrade in two years, according to the press release.
“We have made a number of difficult decisions during challenging economic times, decisions which have ultimately resulted in a brighter fiscal outlook,” Hornik said. “The Township Council’s continued review of the township’s finances and involvement in the budget process have been critical to our success. Our employees must also be recognized for implementing the policies which ultimately got us to this point.”
As part of its review, S&P also reviewed Marlboro’s six-year capital plan and noted Marlboro’s strong commitment to capital improvements going forward, according to the press release.
“We continue to make the case that investments in infrastructure, especially at a time of historically low interest rates, is good policy, which is why we are dedicating $5 million to road improvements in 2018,” Hornik said. “Marlboro’s philosophy with respect to an active and managed capital program was validated in this rating review. The AAA credit rating enables us to invest in our infrastructure at the lowest costs available.”
As of March 12, only 29 municipalities, representing 5 percent of New Jersey towns, were rated AAA by S&P, according to the press release. S&P noted that while Marlboro continues to make its annually required pension contribution to the state, the state pension system is chronically underfunded.
“Local government continues to pay its share, and historically the state has shirked its obligation,” Hornik said. “In the context of our review, S&P reiterated its concern regarding the long-term health of the state system. I am hopeful that with a new administration in Trenton, the state will take a more responsible approach to its stewardship of the pension system.”