Bloomfield Bond Notes Get Good Credit Rating From Moody’s – With Some Caveats

BLOOMFIELD, NJ — Bloomfield has secured a favorable credit rating from Moody's Ratings for more than $16 million in bond anticipation notes – but it comes with some caveats.

Moody’s recently announced that it has assigned a MIG 1 rating to the township’s proposed $16.2 million bond anticipation notes (BANs) for 2026. This includes $14.2 million in general improvement notes, and $2 million in water utility notes.

According to Investopdia.com, BANs are short-term, interest-bearing securities that can immediately fund projects while local governments or municipalities await long-term bond financing.

In a news release, Bloomfield officials said the designation – which is Moody’s highest possible short-term credit rating – will allow the township to borrow money at better interest rates.

“Municipalities across the country have faced significant financial headwinds, and Bloomfield has been no exception.” Mayor Jenny Mundell said.

“While there is more work ahead, this rating reflects growing confidence in our financial management and our commitment to responsible stewardship on behalf of our residents,” Mundell said.

Moody’s also gave a MIG 1 rating to $7.3 million in parking utility notes, and maintained Bloomfield’s A1 issuer and general obligation unlimited tax (GOULT) ratings and MIG 1 short-term rating.

Post issuance, the township will have approximately $81.2 million of debt outstanding, Moody’s reported.

Some of the things that contributed to the town’s A1 issuer rating include a “strong local economy” supported by above-average resident wealth and income levels, and a favorable location near major employment hubs.

Bloomfield’s “satisfactory financial position” is also facing some challenges, Moody’s reported:

“The township's financial position remains satisfactory with $23.2 million in available fund balance or 20.7% of revenue at year-end 2024. However, two consecutive years of reserve declines in 2023 and 2024 have weakened its financial flexibility. The recent declines stem from operating imbalances, driven by underperforming miscellaneous revenues, rising expenditures without sufficient offsetting revenue growth, and the depletion of American Rescue Plan Act funding, which had been used to support recurring expenditures without a permanent replacement. Notably, reserve declines occurred despite an 8% property tax levy increase in 2024, underscoring the extent of budgetary pressure. Fiscal 2025 results are not yet available; however, management has indicated improving stability in both reserves and operations. Nonetheless, failure to stabilize reserves and halt further erosion would exert additional negative pressure on the township's rating.”

“Going forward, we expect the township's debt to grow modestly as it works to fund water-related capital projects and routine general government projects,” Moody’s stated.

• READ MORE: Average Bloomfield Property Tax Tops $12K: See 5-Year Breakdown
• READ MORE: Lead Pipe Replacement In Bloomfield: Thousands Of Lines Inspected

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