NB bond rating of Aa3 reaffirmed by Moody’s, results in $50K savings

NORTH BERGEN – Citing the township’s “prudent management team” and “large tax base,” Moody’s Investors Service has officially reaffirmed North Bergen’s Aa3 bond rating.
Among the highest of any municipality in Hudson County, the 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.
“This bond rating is the result of years of careful financial management, strong budget controls, and solid growth in our ratable base,” said Mayor Nicholas 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.”
A recent $29 million bond anticipation note sale attracted four responsible bidders, indicating strong interest in the financial community for North Bergen’s bonds, and solid market access. The Aa3 rating resulted in a winning bid from TD Securities at an interest rate of only 0.813 percent. This means that North Bergen’s borrowing costs on the bond anticipation note is only $235,000, a potential savings to taxpayers of approximately $50,000 when compared to interest costs that would have resulted from a less-favorable bond rating.
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.

© 2000, Newspaper Media Group