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- Table of Contents
- Overview
- Rating Changes And Distributions
Overview
New Jersey municipalities and counties (or local governments [LGs]) generally have high credit quality, and S&P Global Ratings expects credit quality for New Jersey LGs to remain stable in the near term despite the fact that they face several potential challenges. These challenges include actions at the state level that may affect local government finances (for more information, see "New Jersey's State Budget Offers Flat Aid, Uncertain Revenue For Local Governments," published Aug. 19, 2019, on RatingsDirect). The stability is supported by above-average wealth and income levels and access to strong, broad, and diverse metropolitan statistical areas (MSAs).
S&P Global Ratings maintains ratings on roughly 290 LGs in New Jersey. Overall, the LG portfolio retained stable credit quality in the last 12 months, with only 5.8% experiencing rating movement, including 11 positive rating actions and six negative rating actions. Nine of our positive rating actions reflected strengthening financial performance and reserve positions among the rated municipalities. All six negative rating actions were at least partly due to inconsistent budgetary performance. Nearly 98% of ratings carry a stable outlook, while 1% have negative and 1% have positive outlooks.
- High wealth and income metrics, with average effective buying income of 119% of the U.S. for counties and 135% for municipalities
- Favorable access to major population and economic centers, with 88% of counties and 89% of municipalities having access to a broad and diverse MSA
- Gradual improvements in local economies with either stability or modest increases in tax bases. The median market value per capita is approximately $121,000 for counties and $126,000 for municipalities
- Pension and other postemployment benefit (OPEB) obligations funding pressure that could result in draws on reserves, with the average retirement contribution carrying charge at 8.9% of expenses for counties and 9.2% for municipalities. We view 44% of New Jersey counties and 50% of New Jersey municipalities as not having a credible plan to address their large pension and OPEB obligations, in part due to limited options available given state control over plan funding and an inability to prefund OPEB obligations
- Annual reserve appropriations (anticipated surplus) are common, and LGs in the state frequently hold lower reserves than national peers
- Property tax limitations and already-high taxes could pose pressure to raise revenue to offset higher costs
Rating Changes And Distributions
Table 1
New Jersey Municipalities: Medians | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Rating | ||||||||||||||||
AAA | AA+ | AA | AA- | A+ | A | BBB+ or Lower | ||||||||||
Projected per capita EBI (%) | 215 | 147 | 135 | 102 | 79 | 64 | 57 | |||||||||
Market value per capita ($) | 259,701 | 158,866 | 130,202 | 98,416 | 62,518 | 54,094 | 45,418 | |||||||||
Available general fund (%) | 27 | 24 | 21 | 16 | 16 | 4 | 7 | |||||||||
General fund performance (%) | 1.6 | 1.8 | 0.9 | 2.3 | 0.1 | (4.1) | (2.5) | |||||||||
Cash and expense (%) | 60 | 51 | 50 | 39 | 37 | 16 | 19 | |||||||||
Carrying charge (%) | 10.6 | 9.4 | 10.5 | 10.6 | 8.0 | 6.4 | 6.2 | |||||||||
Pension ARC + OPEB as % expense | 7.7 | 9.6 | 8.6 | 9.6 | 9.9 | 9.3 | 11.3 | |||||||||
EBI--Effective buying income. ARC--Annual required contribution. OPEB--Other postemployment benefits. |
Table 2
New Jersey Counties: Medians | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|
Rating | ||||||||||
AAA | AA+ | AA | AA- | |||||||
Projected per capita EBI (%) | 158 | 130 | 112 | 83 | ||||||
Market value per capita ($) | 187,213 | 123,368 | 101,730 | 67,768 | ||||||
Available general fund (%) | 15 | 15 | 14 | 8 | ||||||
General fund performance (%) | 0.9 | 1.2 | 3.4 | 2.1 | ||||||
Cash and expense (%) | 22 | 31 | 23 | 14 | ||||||
Carrying charge (%) | 12.1 | 12.9 | 10.0 | 7.3 | ||||||
Pension ARC + OPEB as % expense | 9.6 | 4.5 | 9.5 | 7.4 | ||||||
EBI--Effective buying income. ARC--Annual required contribution. OPEB--Other postemployment benefits. |
Chart 1
Chart 2
Table 3
New Jersey Municipalities Unlimited-Tax General Obligation Ratings | ||||||
---|---|---|---|---|---|---|
As of Sept. 18, 2019 | ||||||
This list was prepared by individuals on behalf of the USPF Group of S&P Global Ratings and is current as of Sept. 18, 2019. For the most up to date, accurate, and complete information on any credit ratings referenced in this list, please visit www.standardandpoors.com. | ||||||
Organization | Rating | Outlook | ||||
Aberdeen Township | AA- | Stable | ||||
Alexandria Twp | AA | Stable | ||||
Allamuchy Twp | AA- | Stable | ||||
Allendale Boro | AAA | Stable | ||||
Allentown Boro | AA | Stable | ||||
Andover Twp | AA+ | Stable | ||||
Atlantic City | B | Stable | ||||
Avalon Borough | AAA | Stable | ||||
Barnegat Twp | AA- | Stable | ||||
Barrington Boro | AA- | Stable | ||||
Beachwood Boro | AA- | Stable | ||||
Bellmawr Boro | AA- | Stable | ||||
Belvidere | AA- | Stable | ||||
Berkeley Twp | AA- | Stable | ||||
Berlin Boro | AA- | Stable | ||||
Berlin Township | AA- | Stable | ||||
Bernardsville Borough | AAA | Stable | ||||
Blairstown Township | AA | Stable | ||||
Bloomingdale Boro | AA- | Stable | ||||
Boonton Twp | AAA | Stable | ||||
Bordentown Township | AA | Stable | ||||
Borough of Bradley Beach | AA | Stable | ||||
Borough of Cape May Point | AA | Stable | ||||
Borough of Sea Girt | AAA | Stable | ||||
Borough of West Wildwood | AA- | Stable | ||||
Branchburg Township | AAA | Stable | ||||
Brick Twp | AA | Stable | ||||
Bridgewater Twp | AA+ | Stable | ||||
Brigantine | AA | Stable | ||||
Buena Vista Twp | A+ | Stable | ||||
Burlington | AA- | Stable | ||||
Burlington Township | AA | Stable | ||||
Butler Boro | AA | Stable | ||||
Caldwell Borough | AA- | Stable | ||||
Camden City | BBB+ | Stable | ||||
Cape May | AA | Stable | ||||
Carneys Point Twp | AA- | Stable | ||||
Cedar Grove Township | AA | Stable | ||||
Chesterfield Township | AA- | Stable | ||||
Cinnaminson Twp | AA+ | Stable | ||||
City of Vineland | A+ | Stable | ||||
Clementon Boro | A+ | Stable | ||||
Cliffside Pk Boro | AA+ | Stable | ||||
Clifton | AA- | Positive | ||||
Clinton | AA | Stable | ||||
Closter Boro | AA+ | Stable | ||||
Collingswood Boro | AA- | Stable | ||||
Cranbury Twp | AAA | Stable | ||||
Delaware Township | AA- | Stable | ||||
Demarest Boro | AA+ | Stable | ||||
Dennis Twp | AA- | Stable | ||||
Deptford Twp | AA | Stable | ||||
Dumont Boro | AA | Stable | ||||
East Greenwich Township | AA- | Stable | ||||
East Orange | A+ | Stable | ||||
East Windsor Township | AA+ | Stable | ||||
Egg Harbor | A | Stable | ||||
Egg Harbor Twp | A+ | Stable | ||||
Elk Township | AA- | Stable | ||||
Emerson Boro | AA+ | Stable | ||||
Englewood | AA- | Stable | ||||
Ewing Township | AA | Stable | ||||
Fairfield Township (Cumberland County) | A+ | Stable | ||||
Fairview Borough | AA- | Stable | ||||
Flemington Boro | AA- | Stable | ||||
Florence Twp | AA | Stable | ||||
Franklin Township (Somerset Cnty) | AA+ | Stable | ||||
Franklin Twp (Gloucester Cnty) | AA- | Stable | ||||
Freehold Twp | AA+ | Stable | ||||
Frenchtown Boro | AA- | Stable | ||||
Galloway Twp | AA | Stable | ||||
Garfield | AA- | Stable | ||||
Garwood, Borough of | AA | Stable | ||||
Gibbsboro Boro | AA | Stable | ||||
Glassboro Borough | AA | Stable | ||||
Gloucester City | AA- | Negative | ||||
Gloucester Twp | A+ | Stable | ||||
Greenwich Twp (Gloucester Cnty) | AA- | Stable | ||||
Greenwich Twp (Warren Cnty) | AA+ | Stable | ||||
Guttenberg | AA | Stable | ||||
Hackensack | AA | Stable | ||||
Haddon Hgts Boro | AA- | Stable | ||||
Haledon Boro | AA- | Stable | ||||
Hamilton Twp (Atlantic Cnty) | AA- | Stable | ||||
Hamilton Twp (Mercer Cnty) | AA | Stable | ||||
Hammonton | A+ | Stable | ||||
Hardyston Twp | AA+ | Stable | ||||
Harrison Twp | AA | Stable | ||||
Haworth Boro | AA | Stable | ||||
High Bridge Boro | AA | Stable | ||||
Highland Pk | AA | Stable | ||||
Hillsborough Twp | AA+ | Stable | ||||
Hillsdale Boro | AA+ | Stable | ||||
Hoboken | AA+ | Stable | ||||
Hopatcong Boro | AA+ | Stable | ||||
Hopewell Boro (Mercer Cnty) | AA | Stable | ||||
Hopewell Township (Cumberland County) | AA- | Stable | ||||
Hopewell Twp (Mercer Cnty) | AAA | Stable | ||||
Howell Twp | AA | Stable | ||||
Irvington | BBB | Stable | ||||
Jackson Twp | AA+ | Stable | ||||
Jefferson Twp | AA+ | Stable | ||||
Jersey City | AA- | Stable | ||||
Keansburg Boro | A+ | Stable | ||||
Keyport Boro | AA- | Positive | ||||
Lacey Twp | AA+ | Stable | ||||
Lakehurst Borough | A+ | Stable | ||||
Lakewood Twp | A+ | Stable | ||||
Lambertville | AA | Stable | ||||
Lavallette Boro | AA | Stable | ||||
Lebanon Boro | AA- | Stable | ||||
Leonia Boro | AA | Stable | ||||
Lincoln Pk Boro | AA+ | Stable | ||||
Linden | AA- | Stable | ||||
Lindenwold Borough | AA- | Stable | ||||
Little Egg Harbor Township | AA | Stable | ||||
Little Falls | AA- | Stable | ||||
Little Ferry Boro | AA | Stable | ||||
Livingston Twp | AA | Stable | ||||
Lodi Boro | AA | Stable | ||||
Long Beach Twp | AA+ | Stable | ||||
Longport Boro | AA+ | Stable | ||||
Lopatcong Township | AA | Stable | ||||
Lower Township | AA- | Stable | ||||
Lumberton Twp | AA | Stable | ||||
Lyndhurst Twp | AA | Stable | ||||
Madison Boro | AAA | Stable | ||||
Magnolia Boro | AA- | Stable | ||||
Mahwah Twp | AAA | Stable | ||||
Manchester Twp | AA- | Stable | ||||
Mansfield Twp (Burlington Cnty) | AA | Negative | ||||
Mantoloking Borough | AA+ | Stable | ||||
Mantua Twp | AA- | Stable | ||||
Maple Shade Twp | AA- | Stable | ||||
Maplewood Twp | AA | Stable | ||||
Margate City | AA+ | Stable | ||||
Marlboro Twp | AAA | Stable | ||||
Maywood Boro | AA | Stable | ||||
Mendham Boro | AAA | Stable | ||||
Mendham Twp | AAA | Stable | ||||
Merchantville Boro | A+ | Stable | ||||
Middle Twp | AA- | Stable | ||||
Middlesex Boro | AA | Stable | ||||
Milltown Boro | AA- | Stable | ||||
Millville | AA- | Stable | ||||
Mine Hill Twp | AA+ | Stable | ||||
Monroe Twp (Gloucester Cnty) | AA | Negative | ||||
Monroe Twp (Middlesex Cnty) | AA+ | Stable | ||||
Montclair Twp | AAA | Stable | ||||
Montvale Boro | AAA | Stable | ||||
Montville Township | AAA | Stable | ||||
Moonachie Boro | AA- | Stable | ||||
Mount Ephraim Borough | A+ | Stable | ||||
Mount Holly Twp | AA- | Stable | ||||
Mount Laurel Twp | AA | Stable | ||||
Mount Olive Twp | AA+ | Stable | ||||
Mountain Lakes | AA+ | Stable | ||||
Neptune Twp | AA | Stable | ||||
New Brunswick | A+ | Stable | ||||
New Milford | AA+ | Stable | ||||
New Providence Boro | AAA | Stable | ||||
Newton Twn | AA- | Stable | ||||
North Arlington Borough | AA- | Stable | ||||
North Bergen Twp | AA- | Stable | ||||
North Haledon | AA- | Stable | ||||
North Wildwood | AA- | Stable | ||||
Northfield | AA- | Stable | ||||
Northvale Boro | AA | Stable | ||||
Oakland Borough | AAA | Stable | ||||
Ocean City | AA | Stable | ||||
Ocean Twp (Monmouth Cnty) | AA+ | Stable | ||||
Ogdensburg | AA+ | Stable | ||||
Old Tappan Boro | AAA | Stable | ||||
Oradell Boro | AA+ | Stable | ||||
Orange Twp | BBB+ | Negative | ||||
Oxford Township | AA- | Stable | ||||
Park Ridge Boro | AA | Stable | ||||
Parsippany-Troy Hills Twp | AA | Stable | ||||
Passaic | A+ | Stable | ||||
Paulsboro Boro | AA- | Stable | ||||
Pennington Boro | AA+ | Stable | ||||
Perth Amboy | A+ | Stable | ||||
Phillipsburg Twn | AA- | Stable | ||||
Pilesgrove Twp | AA | Stable | ||||
Pine Hill Boro | AA- | Stable | ||||
Piscataway Twp | AA+ | Stable | ||||
Pitman Boro | AA- | Stable | ||||
Plainfield Brd of Ed | A | Stable | ||||
Plainsboro Twp | AAA | Stable | ||||
Pleasantville | A | Stable | ||||
Point Pleasant Beach Boro | AA- | Stable | ||||
Pompton Lakes Borough | AA | Stable | ||||
Princeton | AAA | Stable | ||||
Rahway | AA | Stable | ||||
Raritan Boro | AA+ | Stable | ||||
Raritan Twp | AA+ | Stable | ||||
Readington Twp | AA | Stable | ||||
Ridgefield Pk Vill | AA | Stable | ||||
Ridgewood Vill | AAA | Stable | ||||
Ringwood Boro | AA+ | Stable | ||||
River Edge Boro | AA+ | Stable | ||||
River Vale Twp | AA | Stable | ||||
Robbinsville Township (Mercer Cnty) | AA+ | Stable | ||||
Rochelle Pk | AA | Stable | ||||
Roseland Boro | AA+ | Stable | ||||
Roselle Boro | A+ | Stable | ||||
Roxbury Twp | AA+ | Stable | ||||
Rutherford Boro | AA+ | Stable | ||||
Saddle Brook Twp | AA- | Stable | ||||
Saddle River Boro | AAA | Stable | ||||
Scotch Plains Twp | AA | Stable | ||||
Sea Isle City | AA | Stable | ||||
Seaside Heights | A | Stable | ||||
Secaucus | AA | Stable | ||||
Somerdale Boro | AA- | Stable | ||||
Somers Pt | AA- | Stable | ||||
Somerville Boro | AA | Stable | ||||
South Amboy | AA- | Stable | ||||
South Bound Brook Boro | AA- | Stable | ||||
South Brunswick Twp | AA | Stable | ||||
South Hackensack Twp | AA+ | Stable | ||||
South Plainfield Boro | AA | Stable | ||||
South River Boro | AA | Stable | ||||
Southampton Township | AA | Stable | ||||
Sparta Twp | AA+ | Stable | ||||
Springfield Twp (Burlington Cnty) | AA- | Stable | ||||
Springfield Twp (Union Cnty) | AA+ | Stable | ||||
Stone Harbor Borough | AA | Stable | ||||
Summit | AAA | Stable | ||||
Swedesboro Borough | AA- | Stable | ||||
Toms River Township | AA | Stable | ||||
Town of Dover | AA- | Stable | ||||
Town of Morristown | AA+ | Stable | ||||
Township of Byram | AA+ | Stable | ||||
Township of North Brunswick | AA+ | Stable | ||||
Township of Pohatcong | AA | Stable | ||||
Township of South Orange Village | AA- | Stable | ||||
Township of Stafford | AA- | Stable | ||||
Tuckerton Boro | AA- | Stable | ||||
Union Beach Boro | AA- | Stable | ||||
Union Township (Hunterdon County) | AA+ | Stable | ||||
Union Twp (Union Cnty) | AA+ | Stable | ||||
Upper Freehold Twp | AAA | Stable | ||||
Ventnor City | AA- | Stable | ||||
Verona Twp | AA | Stable | ||||
Voorhees Township | AA | Stable | ||||
Wall Twp | AA | Stable | ||||
Wallington Boro | AA- | Stable | ||||
Wanaque Borough | AA | Stable | ||||
Warren Township (Somerset County) | AAA | Stable | ||||
Washington Boro | AA | Stable | ||||
Washington Twp (Bergen Cnty) | AA+ | Stable | ||||
Washington Twp (Morris Cnty) | AA | Stable | ||||
Washington Twp (Warren Cnty) | AA | Stable | ||||
Watchung Borough | AA+ | Stable | ||||
Waterford Twp | AA- | Stable | ||||
Wayne Township | AA+ | Stable | ||||
West Caldwell Twp | AA+ | Stable | ||||
West Deptford Twp | AA- | Stable | ||||
West Milford Twp | AA+ | Stable | ||||
West New York | A+ | Stable | ||||
West Orange Twp | AA | Stable | ||||
West Windsor Twp | AAA | Stable | ||||
Westfield Town | AAA | Stable | ||||
Westville Boro | AA- | Stable | ||||
Westwood Boro | AA+ | Stable | ||||
Wildwood | AA- | Stable | ||||
Willingboro Twp | AA- | Stable | ||||
Winslow Township | AA- | Stable | ||||
Wood-Ridge Boro | AA | Stable | ||||
Woodbine Borough | A+ | Stable | ||||
Woodbridge Twp | AA+ | Stable | ||||
Woodbury | AA | Stable | ||||
Woodbury Heights Boro | AA | Stable | ||||
Woodcliff Lake | AAA | Stable | ||||
Woodland Pk Boro | AA | Stable | ||||
Woolwich Twp | AA | Stable |
Table 4
New Jersey Counties Unlimited-Tax General Obligation Ratings | ||||||
---|---|---|---|---|---|---|
As of Sept. 18, 2019 | ||||||
This list was prepared by individuals on behalf of the USPF Group of S&P Global Ratings and is current as of Sept. 18, 2019. For the most up to date, accurate, and complete information on any credit ratings referenced in this list, please visit www.standardandpoors.com. | ||||||
Organization | Rating | Outlook | ||||
Atlantic County | AA | Stable | ||||
Burlington County | AA | Positive | ||||
County of Camden | AA | Stable | ||||
Cumberland County | AA- | Stable | ||||
Gloucester County | AA | Stable | ||||
Hudson Cnty | AA | Stable | ||||
Mercer Cnty | AA+ | Stable | ||||
Middlesex Cnty | AAA | Stable | ||||
Monmouth Cnty | AAA | Stable | ||||
Morris Cnty | AAA | Stable | ||||
Passaic County | AA | Stable | ||||
Salem County | AA- | Stable | ||||
Somerset Cnty | AAA | Stable | ||||
Sussex Cnty | AA+ | Stable | ||||
Union County | AA+ | Stable | ||||
Warren Cnty | AA | Stable |
This report does not constitute a rating action.
Primary Credit Analyst: | John Kennedy, New York+ 1 (212) 438 2128; [email protected] |
Secondary Contact: | Nora G Wittstruck, New York(1) 212-438-8589; [email protected] |
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