Montville upgraded to top financial rating!

Township Committee commitment to lowering debt pays off -  A long-term commitment to reducing municipal debt while using solid financial performance and a strong property tax base supported by high wealth and income levels have propelled Montville to the upper echelon of bond ratings issued by New York-based Standard & Poor's. 

The new rating brings Montville into exclusive company in the Garden State -- only 13 government entities among more than 1,100 in New Jersey have the AAA rating, said Christopher Mortell, senior marketing manager for Standard & Poor's.  See Daily Record.

According to Deputy mayor Jim Sandham, who heads the long term financial planning committee which was revitalized when Art Daughtry took office in 2005: "The raising of Montville’s bond rating by S&P can only mean good things for Montville and our residents.  We already received a lower interest rate on the $10 million of bonds we financed this week, which equates to interest savings of over $25,000 per year or over $400,000 over the life of this bond issuance.  And the timing is fortuitous as we are looking to re-finance previously issued bonds to further reduce our interest expense."

This is the result of emphasis on fiscal responsibility by this Township Committee.  Montville always had diligent department heads that watched expenses, and a superlative CFO in Fran Vanderhoof.  But spending is also significantly influenced by the vision and policies of the elected officials.  When Art Daughtry was elected in 2005 and then Deb Nielson & I in the following year, we started to concentrate, along with Steve Moscone & Jean Bader, on the financial aspects of the Township.  We gave the Long Term Financial Planning Committee (LTFPC) some areas to review and they made great recommendations.  We hired Frank Bastone as the new Township Administrator, who concentrated on financial policy and process.  We set self-imposed limits on capital spending that we adhered to.  Back in 2006 we initiated more economic salary increases, starting with our Department Heads, which we have continued to implement across the other employee groups.  That requires collaboration and cooperation of all our employees – but I believe they realize that was what our taxpayers wanted.  We certainly appreciate their understanding in these difficult economic times.  And our taxpayers are beginning to reap the benefits!

While I knew that we were on the right track and making progress, I was actually pleasantly surprised that S&P recognized it so soon, with the AAA rating.  Yesterday was a great day in Montville’s long and proud history!

James Sandham, Jr., CPA, Chief Financial Officer, Pictorial Offset Corporation - Deputy Mayor