Medians And Credit Factors: New Jersey Municipalities And Counties (2024)

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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
AAAAA+AAAA-A+ABBB+ 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 % expense7.7 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
AAAAA+AAAA-
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 % expense9.6 4.5 9.5 7.4
EBI--Effective buying income. ARC--Annual required contribution. OPEB--Other postemployment benefits.

Chart 1

Medians And Credit Factors: New Jersey Municipalities And Counties (1)

Chart 2

Medians And Credit Factors: New Jersey Municipalities And Counties (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.
OrganizationRatingOutlook
Aberdeen TownshipAA-Stable

Alexandria Twp

AAStable

Allamuchy Twp

AA-Stable

Allendale Boro

AAAStable

Allentown Boro

AAStable

Andover Twp

AA+Stable

Atlantic City

BStable
Avalon BoroughAAAStable

Barnegat Twp

AA-Stable

Barrington Boro

AA-Stable

Beachwood Boro

AA-Stable

Bellmawr Boro

AA-Stable
BelvidereAA-Stable

Berkeley Twp

AA-Stable

Berlin Boro

AA-Stable
Berlin TownshipAA-Stable

Bernardsville Borough

AAAStable
Blairstown TownshipAAStable

Bloomingdale Boro

AA-Stable

Boonton Twp

AAAStable

Bordentown Township

AAStable
Borough of Bradley BeachAAStable

Borough of Cape May Point

AAStable
Borough of Sea GirtAAAStable
Borough of West WildwoodAA-Stable
Branchburg TownshipAAAStable

Brick Twp

AAStable

Bridgewater Twp

AA+Stable

Brigantine

AAStable

Buena Vista Twp

A+Stable
BurlingtonAA-Stable
Burlington TownshipAAStable

Butler Boro

AAStable
Caldwell BoroughAA-Stable
Camden CityBBB+Stable

Cape May

AAStable

Carneys Point Twp

AA-Stable
Cedar Grove TownshipAAStable
Chesterfield TownshipAA-Stable

Cinnaminson Twp

AA+Stable

City of Vineland

A+Stable

Clementon Boro

A+Stable

Cliffside Pk Boro

AA+Stable
CliftonAA-Positive
ClintonAAStable

Closter Boro

AA+Stable

Collingswood Boro

AA-Stable

Cranbury Twp

AAAStable
Delaware TownshipAA-Stable

Demarest Boro

AA+Stable

Dennis Twp

AA-Stable

Deptford Twp

AAStable

Dumont Boro

AAStable
East Greenwich TownshipAA-Stable

East Orange

A+Stable

East Windsor Township

AA+Stable

Egg Harbor

AStable

Egg Harbor Twp

A+Stable
Elk TownshipAA-Stable

Emerson Boro

AA+Stable
EnglewoodAA-Stable
Ewing TownshipAAStable
Fairfield Township (Cumberland County)A+Stable
Fairview BoroughAA-Stable

Flemington Boro

AA-Stable

Florence Twp

AAStable
Franklin Township (Somerset Cnty)AA+Stable

Franklin Twp (Gloucester Cnty)

AA-Stable

Freehold Twp

AA+Stable

Frenchtown Boro

AA-Stable

Galloway Twp

AAStable

Garfield

AA-Stable
Garwood, Borough ofAAStable

Gibbsboro Boro

AAStable
Glassboro BoroughAAStable

Gloucester City

AA-Negative

Gloucester Twp

A+Stable

Greenwich Twp (Gloucester Cnty)

AA-Stable

Greenwich Twp (Warren Cnty)

AA+Stable
GuttenbergAAStable

Hackensack

AAStable

Haddon Hgts Boro

AA-Stable

Haledon Boro

AA-Stable

Hamilton Twp (Atlantic Cnty)

AA-Stable

Hamilton Twp (Mercer Cnty)

AAStable

Hammonton

A+Stable

Hardyston Twp

AA+Stable
Harrison TwpAAStable

Haworth Boro

AAStable

High Bridge Boro

AAStable
Highland PkAAStable

Hillsborough Twp

AA+Stable

Hillsdale Boro

AA+Stable

Hoboken

AA+Stable

Hopatcong Boro

AA+Stable

Hopewell Boro (Mercer Cnty)

AAStable
Hopewell Township (Cumberland County)AA-Stable

Hopewell Twp (Mercer Cnty)

AAAStable
Howell TwpAAStable

Irvington

BBBStable

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 BoroughA+Stable

Lakewood Twp

A+Stable

Lambertville

AAStable

Lavallette Boro

AAStable

Lebanon Boro

AA-Stable

Leonia Boro

AAStable

Lincoln Pk Boro

AA+Stable
LindenAA-Stable
Lindenwold BoroughAA-Stable
Little Egg Harbor TownshipAAStable
Little FallsAA-Stable

Little Ferry Boro

AAStable

Livingston Twp

AAStable

Lodi Boro

AAStable

Long Beach Twp

AA+Stable

Longport Boro

AA+Stable
Lopatcong TownshipAAStable
Lower TownshipAA-Stable

Lumberton Twp

AAStable

Lyndhurst Twp

AAStable

Madison Boro

AAAStable

Magnolia Boro

AA-Stable

Mahwah Twp

AAAStable
Manchester TwpAA-Stable

Mansfield Twp (Burlington Cnty)

AANegative

Mantoloking Borough

AA+Stable

Mantua Twp

AA-Stable

Maple Shade Twp

AA-Stable

Maplewood Twp

AAStable

Margate City

AA+Stable

Marlboro Twp

AAAStable

Maywood Boro

AAStable

Mendham Boro

AAAStable

Mendham Twp

AAAStable

Merchantville Boro

A+Stable

Middle Twp

AA-Stable

Middlesex Boro

AAStable

Milltown Boro

AA-Stable
MillvilleAA-Stable

Mine Hill Twp

AA+Stable

Monroe Twp (Gloucester Cnty)

AANegative

Monroe Twp (Middlesex Cnty)

AA+Stable

Montclair Twp

AAAStable

Montvale Boro

AAAStable

Montville Township

AAAStable

Moonachie Boro

AA-Stable

Mount Ephraim Borough

A+Stable

Mount Holly Twp

AA-Stable

Mount Laurel Twp

AAStable

Mount Olive Twp

AA+Stable

Mountain Lakes

AA+Stable

Neptune Twp

AAStable

New Brunswick

A+Stable

New Milford

AA+Stable

New Providence Boro

AAAStable
Newton TwnAA-Stable
North Arlington BoroughAA-Stable

North Bergen Twp

AA-Stable

North Haledon

AA-Stable

North Wildwood

AA-Stable
NorthfieldAA-Stable

Northvale Boro

AAStable
Oakland BoroughAAAStable

Ocean City

AAStable

Ocean Twp (Monmouth Cnty)

AA+Stable
OgdensburgAA+Stable

Old Tappan Boro

AAAStable

Oradell Boro

AA+Stable

Orange Twp

BBB+Negative
Oxford TownshipAA-Stable

Park Ridge Boro

AAStable

Parsippany-Troy Hills Twp

AAStable

Passaic

A+Stable

Paulsboro Boro

AA-Stable

Pennington Boro

AA+Stable

Perth Amboy

A+Stable

Phillipsburg Twn

AA-Stable

Pilesgrove Twp

AAStable

Pine Hill Boro

AA-Stable

Piscataway Twp

AA+Stable

Pitman Boro

AA-Stable

Plainfield Brd of Ed

AStable

Plainsboro Twp

AAAStable

Pleasantville

AStable

Point Pleasant Beach Boro

AA-Stable
Pompton Lakes BoroughAAStable
PrincetonAAAStable

Rahway

AAStable

Raritan Boro

AA+Stable

Raritan Twp

AA+Stable

Readington Twp

AAStable

Ridgefield Pk Vill

AAStable

Ridgewood Vill

AAAStable

Ringwood Boro

AA+Stable

River Edge Boro

AA+Stable

River Vale Twp

AAStable
Robbinsville Township (Mercer Cnty)AA+Stable

Rochelle Pk

AAStable

Roseland Boro

AA+Stable

Roselle Boro

A+Stable

Roxbury Twp

AA+Stable

Rutherford Boro

AA+Stable

Saddle Brook Twp

AA-Stable

Saddle River Boro

AAAStable

Scotch Plains Twp

AAStable

Sea Isle City

AAStable

Seaside Heights

AStable

Secaucus

AAStable

Somerdale Boro

AA-Stable

Somers Pt

AA-Stable

Somerville Boro

AAStable

South Amboy

AA-Stable

South Bound Brook Boro

AA-Stable

South Brunswick Twp

AAStable

South Hackensack Twp

AA+Stable

South Plainfield Boro

AAStable

South River Boro

AAStable
Southampton TownshipAAStable

Sparta Twp

AA+Stable

Springfield Twp (Burlington Cnty)

AA-Stable

Springfield Twp (Union Cnty)

AA+Stable

Stone Harbor Borough

AAStable

Summit

AAAStable

Swedesboro Borough

AA-Stable
Toms River TownshipAAStable
Town of DoverAA-Stable

Town of Morristown

AA+Stable
Township of ByramAA+Stable
Township of North BrunswickAA+Stable
Township of PohatcongAAStable
Township of South Orange VillageAA-Stable
Township of StaffordAA-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

AAAStable

Ventnor City

AA-Stable

Verona Twp

AAStable
Voorhees TownshipAAStable

Wall Twp

AAStable

Wallington Boro

AA-Stable
Wanaque BoroughAAStable
Warren Township (Somerset County)AAAStable

Washington Boro

AAStable

Washington Twp (Bergen Cnty)

AA+Stable

Washington Twp (Morris Cnty)

AAStable

Washington Twp (Warren Cnty)

AAStable
Watchung BoroughAA+Stable

Waterford Twp

AA-Stable
Wayne TownshipAA+Stable

West Caldwell Twp

AA+Stable

West Deptford Twp

AA-Stable

West Milford Twp

AA+Stable

West New York

A+Stable

West Orange Twp

AAStable

West Windsor Twp

AAAStable

Westfield Town

AAAStable

Westville Boro

AA-Stable

Westwood Boro

AA+Stable
WildwoodAA-Stable

Willingboro Twp

AA-Stable
Winslow TownshipAA-Stable

Wood-Ridge Boro

AAStable

Woodbine Borough

A+Stable

Woodbridge Twp

AA+Stable
WoodburyAAStable

Woodbury Heights Boro

AAStable
Woodcliff LakeAAAStable

Woodland Pk Boro

AAStable

Woolwich Twp

AAStable

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.
OrganizationRatingOutlook

Atlantic County

AAStable

Burlington County

AAPositive

County of Camden

AAStable

Cumberland County

AA-Stable

Gloucester County

AAStable

Hudson Cnty

AAStable

Mercer Cnty

AA+Stable

Middlesex Cnty

AAAStable

Monmouth Cnty

AAAStable

Morris Cnty

AAAStable

Passaic County

AAStable

Salem County

AA-Stable

Somerset Cnty

AAAStable

Sussex Cnty

AA+Stable

Union County

AA+Stable

Warren Cnty

AAStable

This report does not constitute a rating action.

Primary Credit Analyst:John Kennedy, New York+ 1 (212) 438 2128;
john.kennedy@spglobal.com
Secondary Contact:Nora G Wittstruck, New York(1) 212-438-8589;
nora.wittstruck@spglobal.com

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Medians And Credit Factors: New Jersey Municipalities And Counties (2024)
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