Moody's Reaffirms Highest Bond Rating For Essex County

ESSEX COUNTY, NJ — Essex County has earned another Aaa bond rating from Moody’s Investors Service, officials reported last week.

According to a statement from the county, Moody’s reaffirmed its “Aaa rating with a stable outlook” in a review released on Wednesday, July 6.

Essex County received the Aaa rating for the first time in 2018 and has maintained this highest rating in each of the last four years.

County officials reported:

“The eight-page report states that the Aaa rating reflects Essex County’s ‘healthy reserves’ and ‘conservative budgeting practices.’ It states: ‘Essex County's strong governance is reflected in a score of G-1 (This is the highest rating in that category). The county has built a deep bench of civil servants and outside professionals to implement its policy objectives. This, plus a combination of a strong state-wide institutional framework and highly conservative budgeting, has allowed the county not only to strengthen its finances but to do so while providing various forms of assistance to its local governments.’ This refers to Essex County partnering with the City of Newark on a $120 million loan to replace lead water service lines. The report also notes that ‘The county's financial position will remain strong in the near to medium term as management continues to budget conservatively’ and ‘over the past several years, management has been consciously building reserves.’ This refers to the $108.2 million fund balance Essex had in 2020, the latest year cited in the report.”

Moody’s ratings report was issued for a series of bonds totaling $115.5 million. The proceeds provided revenue to finance college improvements, various bridge, culvert, drainage, road, park and building improvements, and vehicle acquisitions in the county.

“I view our ratings reports from Moody’s as our financial report card because it demonstrates the strength and stability of our finances and the confidence that Wall Street investors have in us,” Essex County Executive Joseph DiVincenzo Jr. said.

“Keeping our Aaa rating makes Essex County a more attractive community for residents and businesses,” DiVincenzo said, adding that it also helps the county get better interest rates and attract more investors when it issues bonds.

DiVincenzo also said that a good bond rating “enhances” local property values.

In New Jersey, property taxes are made up of three parts: municipal, school and county.

According to DiVincenzo, the county’s 2022 budget included a zero percent property tax increase for the first time. Over the last five years, the property tax increase was limited to 0.45 percent and, since 2012, the property tax increase has been limited to 1.16 percent, “well below” the 2 percent cap limit mandated by the state, he said.

• See related article: 'Zero Percent Property Tax Increase' In Essex County’s 2022 Budget
• See related article: Tax Gap In Essex County: Many Wealthier Towns Pay Lower Rates

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