Lumberton’s Credit Rating Increase Brings $479,569 in Interest Savings on Public Safety Building Bond
Lumberton Township’s Credit Rating Upgraded
Standard & Poor’s Gives Lumberton a “AA” Rating
February 17, 2017 – Lumberton Township – Today, Lumberton Township received a credit rating upgrade from AA- (stable) to AA (stable) from Standard and Poor’s Rating Services. S & P assigned an AA long-term rating and stable outlook to Lumberton’s Series 2017 General Obligation (GO) Bonds being used to fund the new Public Safety Building. In their report, S & P cited Lumberton’s very strong economy, plus its strong Budgetary Performance and Flexibility, with an available fund balance in fiscal 2015 of 15% of operating expenditures.
“We based the raised rating on the township’s improved budgetary performance to strong from weak, resulting in very strong budgetary flexibility, which we no longer considered nominally low,” said S & P Global Rating Credit Analyst Lauren Freire.
“Since the economic downturn 10 years ago, our Township has made strides to stabilize our Municipal Budget to ensure minimal impact on our residents, while maintaining all core municipal services at levels expected by our taxpayers,” stated Committeeman Mike Mansdoerfer, liaison to the Township’s Finance Department. “In the last 10 years, Lumberton has been able to stabilize our overall budget from $9,983,240 in 2007 to $8,786,036 which we expect to introduce next month for our 2017 budget. That is a reduction of $1,197,204 in our overall spending budget in the last 10 years,” explained Committeeman Mansdoerfer.
The overall credit rating increase of AA Stable from Standard and Poor’s has translate into lower interest rates for the Township’s 2017 GO Bond for the construction of a new Public Safety Building, which was approved by the Township Committee late last year. In the beginning of March, 2017, the Township closed on its 2017 GO Bond with a realized savings of an additional $479,569 in interest payments over the life of the 25 year bond. This savings would not have been achieved without the credit rating increase from AA- to AA. In citing the Township’s strong budget performance, S & P mentions the Township has implemented strong financial controls to help build and maintain its fund balance levels. By increasing its budgetary performance, the Township, through its new Township Administrator, has been able to closely monitor its budget to actuals, while actively managing its expenditures, allowing for very strong budgetary flexibility.
Mayor Sean Earlen stated, “This credit rating increase is a direct reflection on the leadership of Committeeman Mansdoerfer and our Township staff, who have been working hard to ensure that the Township Committee passes responsible budgets each year, balancing an affordable rate for our local taxpayers, while maintaining the services those taxpayers have come to expect from their municipal government.” “Through their efforts, we have been able to keep the Township’s budgets below the 2% levy cap, averaging about $300,000 under the cap over the last three years.” “Because of these efforts, we expect to introduce our 2017 Municipal Budget next month, which will decrease the local property tax rate for our residents, while providing for the construction of our New Public Safety Building,” added Mayor Earlen.
A full copy for the Standard and Poor’s rating of Lumberton Township is contained in this email and is also available online at www.standardandpoors.com/ratingdirect.
Lumberton Township Introduces 2017 Budget with a 3% Tax Cut
Once Adopted this Budget will Equate to Roughly a $30 Saving
to the Average Assessed Home of $292,917.00
March 15, 2017 – Lumberton Township – Tuesday evening, the Lumberton Township Committee introduced its 2017 Municipal Budget, which lowers the Local Tax Levy by 3% or roughly 1 penny for every $100 of assessed value. This represents a local tax rate decrease from last year’s 0.421 to this year’s 0.411. The amount to be raised in taxes through this budget equates to an overall reduction of $169,950, taking the total tax levy from $5,860,229.02 in 2016 to $5,690,279.02 for 2017. In all, the entire budget appropriations for the 2017 Budget is $8,787,936, which is $128,561 less than the $8,917,497 appropriated in the last year’s 2016 Adopted Budget.
“We are extremely proud to introduce this year’s budget, which reduces the burden on our local taxpayers while maintaining all of our core Township Services, including staffing our Police Department at its increased level of 20 Sworn Officers,” stated Mayor Sean Earlen. “I would like to thank Committeeman Mansdoerfer, our Liaison to the Finance Department, our Township Administrator Brandon Umba and the rest of the Township Staff, who worked tirelessly to implement this responsible municipal budget”, added Mayor Earlen.
One main element impacting the 2017 Budget and future budgets is the total annual debt payment, which decreased from $1,197,575 to $702,117, allowing the Township to close on a capital bond for the cost of its new Public Safety Building, without impacting local taxes. Using this sizeable gap in debt payments, the Township was able to structure its new capital bond so that annual payments remained within that gap, eliminating any tax impact to the Township’s taxpayers. Additionally, due to the Township’s recent credit rating increase from Standard and Poors, Lumberton taxpayers realized an additional savings of $479,569 in interest payments over the life of the 25 year bond that was acquired to cover the cost of the new Public Safety Building. This savings would not have been achieved without the credit rating increase from AA- to AA.
“Since the economic downturn, our Township has made strides to stabilize our Municipal Budget to ensure minimal impact on our residents, while maintaining all core municipal services at levels expected by our taxpayers, all while our ratable base decreased,” stated Committeeman Mike Mansdoerfer, liaison to the Township’s Finance Department. “In the past 10 years, Lumberton’s ratable base has dropped by over $56 million, the lion share or roughly $47 million of that loss has come in the last 5 years, causing significant impact to our municipal budgets during that time. However, even with that ratable loss, the Township has been able to consistently decrease our total annual budget to the tune of $1,197,204 in the last 10 years and this year’s budget culminates all of our past efforts by providing tax relief to our residents,” explained Committeeman Mansdoerfer.
“The fact that we have been able to provide our residents with a tax cut and fund the construction of a new Public Safety Building is a true testament to hard work of our Township Committee and staff. Though it is always hard to predict future budgets, we are hopeful with our ratables stabilizing or even increasing as we suspect, that our future budgets will remain flat over the next several years,” concluded Mayor Earlen.
Lumberton Township has set its Budget Adoption hearing for 7:30pm on Tuesday evening April 25, 2017 at the Lumberton Municipal Building, 35 Municipal Drive, Lumberton, NJ 08048. Residents are encouraged to attend.
Lumberton Township Holds Ribbon Cutting Ceremony for it’s Two Newest Playground at Bryan Freeman Park in the Bobby’s Runs Section of Town
Lumberton, NJ – October 31, 2016 – After two months of construction, the Lumberton Township Committee is set to open its newest playgrounds as part of its Phase 1 refurbishment of the recreational parks located in the Bobby’s Run section of the Township. Phase 1 consisted of replacing both playgrounds located at Bryan Freeman Park, as well as the playground at Turnbridge Drive. The Turnbridge Park officially opened last weekend.
In Phase 2 is also underway and will completely refurbishing the tennis courts located at Bryan Freeman Park This overall project is a continuation of the Township Committee’s commitment to refurbishing the Public Parks and Playgrounds throughout the Town, all of which have all been funded in part by grants from the Burlington County Municipal Park Development Program.
Mayor Sean Earlen stated, “the grand opening of these last two new state of the art playgrounds located at the Bryan Freeman Park rounds out the Township’s 2016 playground reconstruction plan and my colleagues and I are proud to have all three playgrounds now open for our residents to enjoy.” “We have been very fortunate over the years to receive well over $875,000 worth of grant money provided by the Burlington County’s Municipal Park Development Program. As you drive throughout the Township it is great seeing all of the completed projects being enjoyed by our residents and visitors to our great town,” added Mayor Earlen.
To date, Lumberton Township and the Burlington County Freeholders have teamed up to construct a brand new playground, Community Garden and Dog Park at the Village Green, a Canoe Launch on the Rancocas Creek, sports fields at our Municipal Building Complex, and now the refurbishment of Turnbridge Park and Bryan Freeman Park’s Playgrounds.
“Partnering with the Burlington County Freeholder Board has been a no brainer decision for the Township Committee,” added Committeeman Jim Conway, who serves as one of the Engineering Project liaisons to the Township Committee. “This year in particular has been extremely good for Lumberton Township as participants in the county’s Park Development Grant Program due to the fact that several of our past projects provided by these grant funds finished well under budget and we were permitted to use all of our leftover grant money to refurbish three playgrounds in the Bobby’s Run Section of the Township,” stated Committeeman Conway.
Bryan Freeman Park will be open from dawn to dusk, seven days a week to be enjoyed by Township Residents.
On Friday, July 10th, 2015, the Township Committee marked the next chapter of beautifying our Municipal Corridor, by holding a Demolition Ceremony of the Former Municipal Complex. Below please see the attached Press Release from the Township and related press coverage of this event.