Chatham Township's pretty much on top.

The municipality was named the second-best place to live in the state by New Jersey Monthly Magazine in its annual rankings of the state's 566 municipalities. The distinction represents another honor for the township, which was named New Jersey's top municipality by the magazine in 2005.

"We provide a certain level of service—we keep our taxes down, the school system stays nice," said Township Mayor Nicole Hagner. "I certainly think that it takes those things into account."

A short blurb about the township written by New Jersey Monthly affirms the idea that it has "the best of both worlds," as Hagner put it.

"Here, 10,159 residents enjoy gorgeous homes on tree-lined streets and an easy commute to New York City," the magazine wrote. "The town sits on the edge of the Great Swamp National Wildlife Refuge, and is also convenient to luxury shopping."

To determine its rankings, the magazine says it looks at eight factors. They are:

• The population growth rate since the last census;
• The three-year change in median home prices;
• The median property tax bill combined with the change in median taxes over the past two years;
• The percentage of land preserved as open space;
• The unemployment rate;
• The total crime rate;
• State-mandated standardized test scores for students in grades 4, 8 and 11; 
• The number of acute-care hospitals within 10 miles.

Towns with a large amount of open space that are also close to hospitals tended to rate better. Overlook Hospital and Morristown Memorial Hospital are right near the township, and the Great Swamp provides lots of open space.

All that helped contribute to the township's honor.

"It's nice to be up in the higher numbers," Hagner said.

The township also has the added distinction of being the top rated-town that Patch covers. Patch does not have a site in Bedminster Township, which New Jersey Monthly ranked No. 1; the next highest-ranked Patch town after Chatham Township was Caldwell Township, which was ranked No. 3.

Several photos depicting some of the township's landmarks appear above at right.

Chatham Borough ranked 54th on the magazine's list. There are 566 municipalities in the state.

Live in the township? Here's your chance to brag about your community. Write to us at zach@patch.com about why you think the township is well-deserving of this honor.