Despite the impact of COVID-10, “the outlook is stable” for Jersey City’s finances, according to a report issued yesterday by international credit ratings agency Moody’s.
By John Heinis/Hudson County View
“Jersey City is located near the epicenter of the pandemic in the United States of America (Aaa stable) and has seen a material economic and financial impact,” Moody’s wrote.
“That said, the city government is taking strong action to address both the public health needs of the city and the budgetary implications thereof. The city also has extensive plans to address the substantial expected losses of revenue.”
Their outlook comes shortly after releasing another report that says many governments across the country are likely going to receive a negative rating due to the effects of COVID-19.
â€œWhile weâ€™ve seen mostly upgrades under this Administration, we consider this yearâ€™s stable rating a testament to all of the hard work over the past two months to minimize financial hardships for our taxpayers already inundated amid the pandemic,â€ Mayor Steven Fulop said in a statement.
â€œWe were one of the first to confront our projected budget impacts, estimated at $70 million, with preemptive steps to help close the gap including employee buyouts, hiring, and salary freezes, among other cost savings.â€
At the end of March, Fulop said the city was expecting a $70 million financial loss: $50 million in lost revenue, along with $20 million in unforeseen expenses.
Then, about a month ago, the city announced that 400 municipal employees were eligible for buyouts.