The Aaa designation is the highest rating assigned to issues of debt, township officials said.
Sara Winick, Patch Staff
|Updated Mon, Mar 31, 2025 at 2:38 pm ET
MARLBORO, NJ — Moody’s Investors Service has once again assigned its Aaa long-term rating to Marlboro Township’s general obligation (GO) bonds, township officials said.
The Aaa designation is the highest rating assigned to issues of debt, according to officials. Moody’s first assigned an Aaa rating to Marlboro bonds in 2021.
“Marlboro’s credit remains the highest grade available in the marketplace,” Marlboro Mayor Jonathan Hornik said. “This means that our taxpayers continue to benefit from the lowest possible costs for road, parks and recreation and other capital improvements.”
In its report, officials said Moody’s highlighted the town’s strong local economy and resident income levels, as well as the town’s healthy and stable reserves, affordable debt levels, manageable capital needs and strong management.
“This rating is a direct reflection of the township’s conservative budgeting, maintenance of and adherence to strong fiscal policies,” Hornik said. “The township’s balance sheet continues to improve due to conservative budgeting and strong operating results."
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"I want to personally thank the Township Council, Business Administrator, CFO, and hardworking employees for the extraordinary teamwork that makes this accomplishment possible," Hornik continued.
In 2016, officials said Moody’s upgraded Marlboro’s credit rating to Aa2 before it was upgraded again to AAA in 2017 by Standard & Poor’s (S&P). In 2021, Moody’s upgraded Marlboro’s credit rating to Aaa.
According to township officials, Moody’s made a special note of the town’s leadership and indicated that the township’s management team “is very strong and has a deep knowledge base.”
Mayor Hornik expressed his pride in the town’s bond rating and said the town’s work “has involved a host of difficult decisions during challenging economic times.”
“These decisions which have ultimately resulted in a brighter fiscal outlook, and the Township Council’s continued review of the township’s finances and involvement in the budget process have been critical to our success,” Hornik said.
As part of its rating process, officials said Moody’s reviewed the town’s six-year capital plan and acknowledged the town’s commitment to capital improvements going forward, commenting that the town’s future capital needs “are routine in nature and are manageable.”
“We continue to make the case that investments in infrastructure, especially at a time of historically low interest rates, is good policy, which is the rationale behind my $35 million road paving initiative,” Hornik said. “Marlboro’s philosophy with respect to an active and managed capital program was validated in this rating review. This Aaa credit rating enables us to invest in our infrastructure at the lowest cost available.”
As of January 2023, officials said only 6 municipalities (representing 1% of New Jersey towns) were rated both Aaa by Moody’s and AAA by S&P.
Mayor Hornik described the ratings as “a testament to our collective hard work” and said it represents “another great victory for Marlboro taxpayers.”
“Aaa ratings are hard to come by, and equally if not more challenging to maintain, especially on the heels of a global pandemic and overall economic turbulence,” Hornik said. “Two preeminent independent bond rating agencies, S&P and Moody’s, have re-affirmed the township’s high-quality credit.”
In relation to the Moody’s review and the NJ State Pension System, Hornik said what happens in Trenton has repercussions, and that although Marlboro continues to make its annually required contribution to the state and has the budget flexibility to offset future liabilities, the state “has a history of setting insufficient contribution rates and applying very aggressive actuarial assumptions.”
“While the state has taken some meaningful steps to shore up the system in the last several budget cycles, it needs to do so on a more consistent basis, and not saddle local governments with the burden of bad decisions,” Hornik said.
To see Marlboro Township’s post about the bond rating, you can click here. To learn more, you can click here.
Marlboro’s financial documentation can be found on the township website under “Budgets & Audits.”
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