Hillsborough Township Announces Exceptional Financial Strength and Minimal Debt Burden

HILLSBOROUGH, NJ – In preparation for Hillsborough Township’s upcoming Bond Anticipation Note sale, the Township proudly announces its remarkably strong financial position, highlighted by a very low net debt percentage, significant borrowing capacity, and the highest possible short-term bond rating. 

The Township's fiscal health reflects prudent management while continuing to make crucial investments in community assets and infrastructure.

Key Indicators of Fiscal Strength

Several key metrics evidence Hillsborough's outstanding financial stability:

• Extremely Low Net Debt: The Township's net debt burden is minimal, resting at only 0.545% of its total property value (0.764% when including lease-purchase debt). This is dramatically lower than the state's maximum borrowing limit of 3.50%.
• Vast Unused Borrowing Capacity: Hillsborough boasts an impressive $258.7 million in unused borrowing capacity. This ample flexibility ensures the Township can fund future strategic investments without approaching state-mandated limits.
• Top-Tier Bond Ratings: In February 2025, S&P Global Ratings assigned Hillsborough its highest short-term rating of “SP-1+” for its note sale and very-strong long-term rating of “AA+” to the Township’s bonds. These ratings reflect S&P’s strong confidence in the Township’s ability to pay its financial obligations, with their latest report from February noting Hillsborough’s “very strong capacity to pay” and “history of stable finances.”
• Favorable Comparison to Peers: Hillsborough’s net debt percentage is competitive with neighboring communities, underscoring its financial advantage:
  • Hillsborough: 0.546% (with lease debt: 0.764%)
  • Montgomery: 0.657%
  • Bridgewater: 0.739%
  • Branchburg: 0.812%

The Township's strategic use of bonding serves as a critical protection for taxpayers, effectively reducing the financial burden for vital infrastructure needs like fixing roads and protecting open space while simultaneously preventing overdevelopment. 

Debt is a necessary tool that governments utilize to fund major projects, much like a mortgage helps an individual finance a home. By leveraging this tool and its stellar bond rating, Hillsborough can finance necessary infrastructure projects, efficiently completing them while actively alleviating the direct financial burden on its residents and taxpayers.

Investing in the Future: Legacy Projects and Infrastructure

The majority of the Township’s debt obligations (nearly 99% excluding utility debt) are tied to high-impact, long-term investments that will benefit residents for generations:

• Preserving Open Space and Preventing Overdevelopment: Major debt has been strategically used to acquire two critical parcels:
  • The 423-acre Mindel Property, which was secured for open space, park, and other beneficial uses, successfully averted potential development as a natural gas power plant, high-density housing, or warehouses.
  • The 369-acre GSA Property, which helps prevent the construction of approximately 2,000 residential homes.
• Roads and Core Infrastructure: A significant portion of the borrowing is dedicated to ongoing, essential Township-wide road improvements.
• Planned Capital Improvements: The 2025 Bond Ordinance will fund routine capital needs and a major, once-in-a-generation renovation of the Department of Public Works Building. Other projects include new vehicles and equipment for the Police Department, Library upgrades, and new transportation vans for senior services and Emergency Management.

These legacy projects, road improvements, and essential capital upgrades collectively account for over 91% of the Township's non-utility debt, demonstrating a clear focus on purposeful, long-term value creation for the community.

"Hillsborough's financial standing is a testament to our commitment to fiscal responsibility," said Mayor John Ciccarelli. "Our conservative debt management ensures we have the resources to invest in vital infrastructure, protect our community from unwanted development, and maintain the high quality of life our residents expect, all while keeping our debt burden exceptionally low."