Bayonne’s credit rating has improved substantially, but what does that mean for city residents?
According to a report that was conducted by Moody’s Investors Services, Bayonne’s financial outlook has been upgraded to “positive.” The town’s status was considered “stable” in the Moody’s analysis last year. The score went from Baa1 to A3.
The new report, which was released earlier this month, states that the change was brought on by improvements such as better town management and less reliance on borrowing.
“City management has taken strong steps to improve Bayonne’s finances,” the Moody’s Investors Services report says. “Notable recent successes include weaning the city off cash flow notes and materially reducing the structural imbalance.”
The city’s continued redevelopment efforts were also a factor in the improved rating.
“Development and redevelopment remains a top priority for us,” Mayor James Davis stated in a press release issued on March 17 about the Moody’s rating improvement. “It’s what will cure the structural revenue deficit we inherited and face at the start of each new year.”
City spokesperson Joe Ryan told the Bayonne Community News, “The more that economic development takes place, we get a higher degree of confidence from the financial community. The better the financial rating, the more favorable interest rate the city of Bayonne receives.”
“These types of financial ratings are a measure of confidence that the financial community has in the city of Bayonne.” –Joseph Ryan
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Development a key factor
Moving forward, the rating could be further boosted by the type of growth that comes with ongoing development projects.
“Examples of upcoming development include the Barnabas healthcare facility on Broadway between 23rd and 24th Streets, “ Ryan said, “apartment-house development on the Texaco site on the southwest corner of Broadway; and commercial and residential development at Harbor Station North and South on the former Military Ocean Terminal.”
These development projects will provide employment opportunities within the community as well. Barnabas Health has stated that the new Bayonne facility will provide around 120 jobs upon completion. The building process will create many construction jobs as well. This could contribute to a continued boost in the Moody’s rating.
New housing is another factor that could push the rating upward by making room for more residents. New buildings with modern amenities could help make Bayonne more appealing to people who are apartment hunting in the New York area.
“Substantial growth in the city’s tax base and socioeconomic indictors” were listed as factors that could lead to an upgrade in the next report.
“These types of financial ratings are a measure of confidence that the financial community has in the city of Bayonne,” Ryan said. “Therefore the city gets more income and is in a better position to meet its financial obligation.”
Mayor Davis said, “This is real, it’s tangible success. Our plan is working. The future of Bayonne is bright.”