Hamilton Saves Nearly $2 Million in Long-Term Debt as Major Rating Service Lauds Township’s ‘Improved Finances and Management’ with Stable Outlook, Bond Rating
As Hamilton Township continues to invest in road repair projects and needed infrastructure improvements that will maintain residents’ high quality of life and property values, Hamilton will ultimately save $2 million in long-term debt following a major rating service’s reaffirmation of its AA category bond rating and “stable outlook”, in addition to an increased rating of Hamilton’s financial management assessment.
Crediting Hamilton Township for its improved finances and management, which includes monthly budget-to-actual results reports, multi-year capital and general budget planning and the maintaining of a capital fund balance for liquidity through the year, Standard and Poor’s Rating Services increased its Financial Management Assessment (FMA) of Hamilton’s financial management to “good” from its prior rating of “standard”. A “good” FMA indicates the existence of financial management practices in most areas.
In its outlook for Hamilton, Standard and Poor’s also noted the Township government’s conservative budgeting practices and low debt and the community’s thriving local economy:
“The stable outlook reflects Standard & Poor's opinion of Hamilton Township's improved finances and management practices. We expect the township to maintain, what we consider, its good finances due to, what we regard as, its conservative budgeting practices. We believe the township's thriving local economy and access to diverse regional employment centers, strong wealth and income, and low debt are stabilizing rating factors. Therefore, we do not expect to change the rating within the outlook's two-year period.”
Additionally, Standard and Poor’s review of Hamilton’s financial management noted other financial achievements, such as a flat tax rate for the coming year, a proposed 2013 municipal budget that is nearly 1.1% lower than the prior year’s budget and the elimination of 17 positions through attrition.
Moreover, Standard and Poor’s report also cited Hamilton Township’s “below-average unemployment rate”, “strong and stable economic indicators” and “very strong property values.”
As a result of Standard and Poor’s positive assessment of Hamilton Township’s financial management and conservative budgeting, taxpayers will enjoy a nearly $2 million savings in long-term debt (which funds road and sewer repairs, among other infrastructure improvements) over the life of the debt.
“This very positive assessment from a credible, independent rating service like Standard and Poor’s confirms the strong financial management and controls that my administration works every day to ensure for the taxpayers of Hamilton Township. And as we continue to invest in our community’s roads, sewer system and other needed infrastructure improvements, the nearly $2 million dollars in long-term debt savings will benefit current and future Hamiltonians,” explains Hamilton Township Mayor Kelly A. Yaede. “I am also very pleased that Standard and Poor’s recognized our conservative budgeting practices by increasing its Financial Management Assessment of Hamilton, which I believe assures our residents that their local government is acting as a good steward of their hard-earned tax dollars and operating under the strong controls and procedures that all local governments should follow.”