Scotch Plains Bond Rating Shows the Township on Strong Financial Footing
In yet another affirmation of Scotch Plains strong fiscal position, Moody’s has given the Township an “Aaa” bond rating, the highest bond rating assigned by the company and only awarded to 10% of municipalities in New Jersey.
Such a strong rating from an independent agency underscores the strong creditworthiness of Scotch Plains as an issuer of bonds, signifying the municipality has strong financial backing and credit reserves. Quite simply, the Aaa rating assures municipal bond investors that default on loans would be very, very low. Moody’s described Scotch Plains as being in an “exceptional credit position,” noting the municipal financial position is “robust.”
Because of such a strong bond rating, following a detailed review of the Township’s finances by third-party, non-partisan fiscal experts at Moody’s, Scotch Plains can borrow money more cheaply. Scotch Plains taxpayers are directly benefiting from capital projects funded at low interest rates that most other municipalities would never be offered.
“Our excellent bond rating reflects our stable municipal tax rate, strong administrative management, consistent financial operations and low debt,” explained Scotch Plains Mayor Josh Losardo. “We’ve continually tightened our belt, not spending a nickel more than we must, and the financial services companies have clearly taken note.”
Losardo expressed his appreciation to Municipal Manager Al Mirabella and CFO Teddy Georgiou, as well as the municipal directors and chiefs who all practice strong budgeting and expense management.
With the Aaa rating, Scotch Plains is also being recognized for proactive planning, in which Township leaders deliberately limit borrowing and focus on the quick erasure of municipal debt.
Focusing on the future, Losardo said, the township will continue to negotiate fair, fiscally-responsible union contracts, manage future debt as expediently as possible, further increase the collection rate of taxes and improve cash reserve levels.