NORTH BERGEN, NJ — Citing the township’s “prudent management team” and “large tax base,” Moody’s Investors Service has officially reaffirmed North Bergen’s outstanding Aa3 bond rating. Among the highest of any municipality in Hudson County, the Aa3 rating has already influenced a highly-successful $29 million Bond Anticipation Note Sale that was held today, resulting in a winning bid from TD Securities and an interest rate of only 0.813%. This means that North Bergen’s borrowing costs on the Bond Anticipation Note is only $235,000 — a savings to taxpayers of approximately $50,000 when compared to interest costs that would be have resulted from a less-favorable bond rating.
“This bond rating is the result of years of careful financial management, strong budget controls and solid growth in our ratable base,” said Mayor Nick Sacco. “We are very proud to see North Bergen’s fiscal discipline and success continue to be recognized by ratings agencies like Moody’s and are excited to see our taxpayers continue to reap the benefits in substantial savings on interest costs.”
The township’s Aa3 rating gives it access to lower interest rates compared to borrowers with weaker ratings, saving taxpayers significantly when bonds are issued for capital projects like street repairs, sewer improvements, vehicle purchases and other major expenses. Today’s note sale attracted four responsible bidders, indicating strong interest in the financial community for North Bergen’s bonds and solid market access. North Bergen’s Aa3 rating stands in stark contrast to the state’s bond rating, which has been downgraded several times in recent years due to pension underfunding and other issues.
“Our professional finance team works hard every day to make sure tax dollars are spent wisely and to make our local government more efficient,” said Revenue and Finance Commissioner Julio Marenco. “North Bergen residents expect nothing less and we are happy to be able to continue delivering stable property taxes and sufficient funding for the programs and services our residents rely on.”