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Moody’s Investors Services Releases Upgrade Rating to A2

Press Release 7/24/19

PERTH AMBOY – The City of Perth Amboy is pleased to announce that Moody’s Investors Service has upgraded the general obligation unlimited tax (GOULT) rating to A2 from A3 by recognizing several credit strengths including, the City’s healthy financial position, conservative budgeting practices and formalized financial and debt management policies.

Moody’s rating rationale states, “The upgrade to A2 reflects Perth Amboy trend of improving finances, declining debt burden and reduced unemployment rate.”

The summary provided by Moody’s indicates that their credit upgrade considered the following:

• The unemployment rate has fallen from historical highs.

• The City’s financial position is healthy and has continued to improve due to conservative budgeting practices and growth in construction code fees and other miscellaneous revenues.

• The City’s above average (inherited) debt burden is expected to continue to decline.

“I am extremely proud to announce that the City of Perth Amboy’s fiscal responsibility has been recognized by a credit upgrade. We are at the brink of changing the financial status and identity of this City and we will continue to pursue stability in our finances. It is important for the long-term fiscal security of the City that we follow the lead established by my proposed budget,” said Mayor Wilda Diaz. “My administration is committed and has prepared a plan to continue developing a secure foundation for the City of Perth Amboy. I’d like to sincerely thank my administration. I cannot acknowledge them enough for their compliance and for their commitment to our City.”

The administration’s fiscal restraint and sound budgetary planning has improved the City’s financial position and has proposed a responsible tax increase for Calendar Year 2019 to continue providing the best services to residents, while achieving a balance between necessary services and financial resources available.

The City of Perth Amboy remains committed to achieving its financial goals of reaching fiscal stability, remaining fiscally transparent with stakeholders, strategically seeking grant funding to improve and safeguard the capital infrastructure of the City, positively develop the City’s financial reputation and to continue adding to the City’s tax base through redevelopment and business development.

The City of Perth Amboy and the Perth Amboy Redevelopment Agency attracted more than $600 million in corporate investments to create jobs for our residents, to utilize and beautify vacant property and to help fuel our local economy.  Their investments supports our tax base and enhances the city with great job opportunities.  Additionally, Perth Amboy’s unemployment rate currently stands at 4.8 percent, the lowest it’s been in more than 20 years.

Several of the City’s most notable redevelopment projects include:

• ePort Phase 1, 78 acres of remediated property, including a fulfillment center leased by Target

• The RealReal a 492,000-square-foot fulfillment center

• Elm Street Logistics Center, 90 acres of remediated property (not mentioned in report)

• Gourmet Nut, 3.8 acres of renovated property (not mentioned in report)

The City of Perth Amboy plans to remediate additional brownfield sites through state grants or developer funding. The sites will be redeveloped into public green spaces and commercial properties.

The report released by Moody’s today provides Perth Amboy’s credit profile in detail.