Waldwick October 12, 2011 THE VILLADOM TIMES III • Page 9 The Borough of Waldwick is paving the road to protect itself from any potential downgrade in its bond rating. The town now enjoys an A plus rating from the major rating companies. Chief Financial Officer Mary Ann Viviani recommended to the mayor and council last week that they adopt a resolution setting forth the borough’s current policy on the use of the yearly budgetary surplus. The borough has had an unwritten philosophy of applying no more than 50 percent of its fund balance to the future year’s budget since the early 1990s. This plan carries through for the current fund, which affects property taxes. “We have sound fiscal policies which have been applauded by the rating agencies when they’ve come in to rate us for our bonds,” said Borough Administrator Gary Kratz. Those practices will now be adopted as policy. Viviani explained that rating agencies are now paying closer attention to whether government agencies are using the surplus to balance their budgets due to the 2 percent cap imposed by the state. She said that in some Resolutions will strengthen borough’s bond rating cases agencies are downgrading the rating or giving a conditional rating. “If we say in a resolution how we are handling the surplus, then it will not negatively impact us. If we decide to change, we redo the resolution and send it to the rating agency,” Viviani said. She said that keeping the rate up results in a more favorable interest rate from the banks when the town goes out for financing. She said bond anticipation notes worth $2,628,500 were sold in 2011. The borough will also put in writing in the form of a resolution its current practice of having the CFO prepare secondary disclosure statements as required by the Municipal Securities Rulemaking Board, rather than having them done by the auditor. The statement, which is used when the financial institution which buys the town’s bonds wants to resell them, includes updated financial information that has changed within the borough during the current year. “We are happy the state wants us to do what we have been doing all along. It’s an affirmation of our financial management,” Kratz noted. Kratz said that if the rating agencies do look closely at the borough’s financial practices, “we have a good story to tell them,” and he went on to enumerate the favorable points: • A terminal leave policy limited to 65 days. • No unfunded liability in the pension fund • No retiree health benefits obligations “Waldwick is different from other communities,” Kratz stressed.