Hingham Updates Financial Policy, Emphasizes Triple-A Bond Rating
Advisory Committee presents changes to Select Board, including clarifications on bond rating requirements and financial planning
HINGHAM - May 20 - The Hingham Advisory Committee presented proposed updates to the town's financial policy during the May 20 Select Board meeting, emphasizing the importance of maintaining Hingham's triple-A bond rating while clarifying language throughout the document.
Advisory Committee Chair Carol Tully and Vice Chair Ted Ciolkosz outlined the changes, which were developed by a subcommittee that met approximately 12 times over six months.
"We had a subcommittee that was the three of us and two other members of the advisory committee," Tully explains. "We met with Janet from Capital Advisors, brought in some others to get some input, and presented it twice to the advisory committee to get feedback."
The updates focus on clarifying language, changing certain "should" statements to "shall" where appropriate, and documenting existing practices that weren't previously included in the policy.
One change addresses the town's approach to bond ratings. The policy now specifically mentions maintaining a "triple-A bond rating" rather than simply referring to the "highest bond rating."
This prompted discussion among Select Board members about whether the policy should specify seeking ratings from two or three agencies, as the town recently opted to use only two rating agencies.
"We as a board very much, I know as AdCom does, prioritize and value the triple-A bond rating, which is very different than the double-A," Select Board member Liz Klein notes. "This year we did make the decision, very intentionally, to only get the rating from two agencies based on the counsel that we had been given."
Ciolkosz clarified that the policy focuses on maintaining the highest rating possible rather than specifying how many agencies should provide ratings.
"We don't necessarily need a triple-A bond rating," Ciolkosz explains. "We want the triple-A bond rating for the purposes of borrowing for the cheapest cost, obviously, but I don't know that there is an advantage... where we need three rating agencies versus say two or maybe even one."
Another notable update addresses the town's financial planning. The policy now references a 3.5 percent growth rate, updated from the previous 2.5 percent, to align with the town's financial plan.
"The advisory committee strongly supports the financial plan, the MOU, and would look forward to having the town consider to extend that and make whatever adjustments to it are deemed appropriate," Tully says.
The policy also adds language about handling soft costs for major projects, similar to what happened with the Center for Active Living project this year. The town can now consider borrowing amounts that include soft costs to reimburse the unassigned fund balance.
"The intent behind that was flexibility," Ciolkosz explains. "Just in case that situation pops up and we have the flexibility that gets more cash in should there be an emergency or something like that."
Select Board Chair Bill Ramsey expressed appreciation for the committee's work while noting that Town Counsel John Coughlin will review the document to ensure there are no unforeseen issues with the language changes.
"I guess my only concern initially was whether or not the word 'shall' would bind us to do things," Ramsey says. "Given the unpredictable nature of the economy right now, or the chances for another pandemic or something, but reading it, it looks like the 'shalls' would apply for legal requirements that you have to do anyway."
Select Board member Julie Strehle also praised the committee's efforts to clarify the policy.
"It does get better and better with each update," Strehle says. "I'm glad that this update continues."
The Advisory Committee plans to make additional minor revisions based on feedback before finalizing the policy.
Other business at the meeting included:
• Approval of a proclamation declaring May 23, 2025, as "Maddie's Promise Day" in honor of Hingham resident Madeline "Maddie" McCoy, who inspired the creation of a nonprofit organization that raises money for pediatric cancer research
• Approval of a $522,095 agreement with Specialty Vehicles Incorporated for a new ambulance for the Fire Department, replacing a vehicle purchased in 2013
• Approval of a $179,922.04 agreement with the Ockers Company for audio-visual equipment installation in the new public safety facility
• Approval of a $53,994.50 agreement with Colonial Ford Inc. for a new vehicle for the Bare Cove Park Ranger to replace a 1999 Ford pickup truck
• Announcement that the town's Memorial Day service will be held on Monday at 11 a.m. in front of Town Hall
The Select Board also noted that talent bank interviews for residents interested in serving on town boards and committees will be held on June 2, June 4, and June 11.