The City of Hoboken has received some good financial news. According to Standard & Poor’s, the municipality has maintained its credit rating, the second, highest possible rating for a municipality…AA+.
Standard & Poor’s Global Ratings Reaffirms City of Hoboken’s AA+ Credit Rating
The positive credit rating highlights the City’s effective financial management
Mayor Ravi S. Bhalla has announced that Standard & Poor’s Global Ratings (S&P), one of the nation’s premier credit rating services, reaffirmed the City of Hoboken’s AA+ credit rating, the second highest possible rating that can be awarded to a municipality.
The City’s high credit rating will continue to result in savings for Hoboken taxpayers, due to low interest rates and debt service payments when issuing bond proceeds for capital improvements and acquisitions. In addition, the City qualified for low-interest loans with principal forgiveness though the New Jersey Infrastructure Bank to help fund the Northwest Resiliency Park, at no impact to the 2022 municipal budget, thanks to its strong overall credit.
“Despite the many challenges presented by the COVID-19 pandemic, I’m incredibly proud that we have continued to maintain our exceptionally strong credit rating,” said Mayor Bhalla. “Over the past several years, our AA+ rating has allowed my administration to initiate a number of major infrastructure improvements including resiliency parks, water main upgrades, Vision Zero pedestrian safety improvements, and more, which will continue thanks to S&P’s affirmation of the City’s rating. Our financial outlook remains bright, and we will continue to produce fiscally responsible budgets that protect taxpayers in both the short and long-term.”
“It is great news to see that the smart financial decisions and investments by Mayor Bhalla and his Administration, in particular Business Administrator Freeman and the Finance staff, continue to be validated with today’s reaffirmation of the City’s strong AA+ bond rating,” said Council Vice President and Chair of the Finance Subcommittee Emily Jabbour.“I look forward to working collaboratively with the Administration to present another balanced budget with the support of my colleagues in 2022.”
The report outlined several of the City’s strengths including:
- An extremely strong local economy
- Financial management policies and practices …with a strong institutional framework
- Strong budgetary performance
- A financial profile that … will improve in the near term
- The City’s strong cash position
Further, S&P’s credit report also cited the City’s $230 million Rebuild by Design project to protect against the effects of climate change and storm-surge events, as well as additional resiliency measures, that “will improve Hoboken’s economic and financial resiliency” when issuing its AA+ rating.