Lower Township Reports Positive Financial Report Card

VILLAS – Lower Township Manager James Ridgway presented council and the public with a positive financial report card at the Aug. 1 meeting.
Ridgway said that he had been working with a dedicated financial team within the township for approximately 18 months and has made significant improvements to the financial health of the township, including a budget surplus, high tax collection rate and the highest bond rating in the township’s history.
Ridgway credited the finance team made up Chief Financial Officer Lauren Read, Assessor Jennifer Dowe, and Tax Collector Susan Jackson for all their hard work.
Ridgway said the second quarter budget showed most revenues meeting or exceeding budget expectations and that township expenditures are within spending parameters.
The township has a $9.78-million cash balance as of June 30 of this year. Ridgway explained that $4.1 million is obligated for capital improvements, leaving $5.6 million left over which is an increase over this time last year’s cash balance of $4.3 million.
Ridgway stated that the tax collection rate continues to increase to 47.77 percent for the six month period. He noted that tax appeals have decreased during the first two quarters with only 27 appeals to date resulting in an approximate loss of $370,000 or about $6200 in tax revenue.
He emphasized that the township’s bond rating is AA-, which is the highest it has been in the township’s history.
Lower Township held a bond sale on July 28 for $4.52 million to secure funds for the road and storm water drainage project at Roseann Avenue and Bayshore Estates, noted Chief Financial Officer Lauren Read. The successful sale resulted in four bidders submitting 25 competing bids during a 25 minute auction for the lowest True Interest Cost (TIC) and the result helped provide the township with an improved bond rating. Raymond James was the successful bidder with a TIC of 1.69%. This is the lowest debt cost currently held by the Township.
The new bond rating means the township will now be eligible to receive more competitive interest rates over the life of bond loans thereby costing the Lower Township less money over the long term.