No More 'Negative' Outlook for Madison's AAA Credit Rating

A credit ratings agency that dinged Madison's AAA credit rating with a "negative outlook" in 2012 after several years of operating deficits has revised the outlook to stable.

The revision by Standard & Poor's could ease borrowing costs as Madison plans to borrow $4.1 million to pay off the recent purchase and development of the Madison Recreation Center over the next two decades, Madison's mayor said.

The agency said last year's surplus in the borough budget and another projected surplus this year—reversing a trend of drawdowns—were the reasons for the stable outlook.

S&P said in a report it sees the borough's financial position as "very strong." Only 19 of New Jersey's 565 municipalities had a AAA rating, S&P's highest, as of September 2012, according to a borough news release that included statements from Madison officials cheering the news.

Madison Mayor Bob Conley said the improved outlook may ease borrowing costs.

“It puts Madison in great position as we go out to the bond market in the coming weeks,” Conley said. “We should be very proud of our fiscal fitness.”

Councilman Robert Landrigan, co-chair of the finance committee, said the upgrade can be attributed to a budget process that emphasized a “long-term view and measured approach.”

“We looked to maintain the high standard of living and financial stability of Madison that has long been a tradition of our town,” Landrigan said.

“We sought to meet immediate financial obligations and put Madison in a strong financial position going forward. We were successful.”

Councilman Benjamin Wolkowitz gave credit to the stable outlook to several borough employees and elected officials, including the chief financial officer and administrator.

“Applying conservative financial principles can be challenging but thanks to the hard work of Bob Landrigan, (CFO) Robert Kalafut, (Borough Administrator) Ray Codey and (Assistant Borough Administrator) Jim Burnet, and the support of the mayor and members of the Council we were successful,” Wolkowitz said. 

“While continuing to be sensitive to the tax burden of our residents, we will build on this strong financial foundation to ensure that Madison continues to be a wonderful place to live."