The credit rating upgrade by Moody’s earlier this spring is a highlight of Paterson’s efforts to stabilize its finances. The upgrade from a BA1 to a BAA3 rating is a result of the city’s tough financial decisions, such as adjustments to health insurance, establishment of a sewer utility, and a transition to a calendar year budget. This shift has allowed for the creation of a fund balance, noted as a best practice in government, enabling the city to pay its bills on time—a noted improvement from past practices.

The state’s continued support, including supplemental transitional aid, has contributed to the city’s ability to invest in capital improvements without increasing debt. This aid has been used for facility and vehicle investments across various departments, further contributing to the positive credit outlook.

The council discussed the importance of fiscal responsibility and the city’s image to outsiders. Emphasis was placed on the collaboration between the administration and the council in achieving fiscal goals. The city’s efforts to manage the budget and debt without resorting to borrowing were highlighted, along with the role of the state in providing support and stability.

The narrative of moving from stagnation to stability was a key point, with credit given to the business administrator and CFO for their roles in the city’s financial improvements.