After questions about a recent Facebook post, Eyes on EB reviewed Moody’s credit reports, Township financial records and borrowing documents to provide a closer look at the numbers.
Following a Facebook post by the East Brunswick Democratic Organization on October 17, residents have been asking questions about the Township’s credit rating and what it means for East Brunswick’s finances.
The post highlighted East Brunswick’s Aa1 credit rating from Moody’s, an independent credit rating agency, and included favorable statements about the Township’s financial management.
Rather than focus on the politics surrounding the post, Eyes on EB went through the available financial records to better understand what Moody’s has reported, how East Brunswick’s finances have changed over time, and what residents can take away from the information.
Here’s what we found.
What Did the Facebook Post Say?
The October 17 Facebook post referenced a June 26, 2023, Moody’s report describing East Brunswick as having “strong, stable finances with healthy reserves.”
It also highlighted Moody’s assessment that the Township’s fiscal policy was prudent, forward-looking and focused on the long term.
Both statements appear in the original 2023 report and were quoted accurately.
The post also featured the Township’s Aa1 credit rating, which remains in effect today.
What Is East Brunswick’s Credit Rating?
Moody’s currently assigns East Brunswick an Aa1 rating, the second-highest rating on its 21-grade long-term rating scale, just below Aaa.
Credit ratings evaluate a government’s ability to repay its financial obligations. When Moody’s reviews a municipality, it examines several factors, including revenue, reserves, debt, economic conditions and financial management.
A strong credit rating can help a municipality obtain more favorable interest rates when borrowing money.
The rating is not a direct measurement of whether residents’ property taxes are affordable or whether every municipal expenditure is worthwhile. It primarily reflects the financial risks associated with lending money to the Township.
What Did Moody’s Say in 2023?
The June 26, 2023, report identified several financial strengths in East Brunswick.
Among them were healthy financial reserves, stable finances, and long-term fiscal planning.
Moody’s also identified two challenges: elevated financial leverage and limited opportunities for additional economic development because East Brunswick is already substantially developed.
Financial leverage includes not only outstanding debt but also long-term pension and retiree health benefit obligations.
At the time, Moody’s calculated those combined obligations at approximately 3.9 times the Township’s annual revenue, compared with a median of approximately 2.4 times for similarly rated governments.
Despite those concerns, Moody’s maintained East Brunswick’s Aa1 rating, citing strong governance and its favorable location.
One important detail is that the 2023 report primarily relied on audited financial results from 2021, with preliminary figures for 2022 and forecasts for 2023.
Was There a More Recent Report?
Yes.
Moody’s issued another credit opinion on June 22, 2026, titled Township of East Brunswick, NJ: Update to credit analysis.
That report provides a more current assessment of East Brunswick’s financial position, incorporating information from 2022 through 2025.
The 2026 Moody’s report maintained the Township’s Aa1 rating.
It also described the municipality as having very strong financial reserves built through active financial management and credited strong budgeting practices that produced surpluses.
In other words, Moody’s continued to view East Brunswick’s overall financial condition favorably.
How Have East Brunswick’s Financial Reserves Changed?
One of the clearest trends in the Township’s financial statements is the growth of its reserves.
According to the audited financial records, East Brunswick’s main operating surplus increased from approximately $24.3 million at the end of 2021 to $40 million at the end of 2025.
Moody’s uses a broader financial measure that includes the Township’s water and sewer utilities. Under that measure, reserves increased from approximately $55.7 million to $75 million during the same period.
These reserves provide a financial cushion for unexpected expenses, economic changes and future budget needs.
Moody’s considers the Township’s reserve position a significant credit strength.
What About Township Debt?
The financial records also show that East Brunswick’s borrowing obligations have changed considerably.
At the end of 2021, the Township had approximately $4.2 million in outstanding general-purpose short-term notes, not counting notes issued for its water utility.
By the end of 2025, that figure had grown to approximately $67.1 million.
Much of the borrowing was associated with larger capital projects, including the ice arena and school improvement projects. The Board of Education is responsible for repaying the school-related portion.
Those figures reflect a period of significant capital investment and borrowing.
How much has net debt grown?
New Jersey requires every town to file an annual debt statement that calculates its “net debt,” the figure the state uses to apply its borrowing limit.
Net debt includes bonds and notes the Township has issued, plus borrowing that has been approved but not yet carried out. It leaves out school debt, utility debt that is supported by the utility’s own revenue, and debt that another public body, such as the Board of Education, repays.
By that measure, East Brunswick’s net debt rose from approximately $32.49 million at the end of 2017 to $99.18 million at the end of 2025, an increase of about 205%. Most of that growth appeared from 2023 onward.
The ice arena accounts for approximately $40.3 million of the increase, counting both notes already issued and borrowing approved but not yet carried out. Parking and pool utility debt that the state does not treat as self-supporting adds about $13.9 million. The rest reflects other capital projects, offset by older debt that has been paid off.
Even after that increase, net debt equaled approximately 0.968% of the value of taxable property in the Township in 2025. New Jersey’s borrowing limit is 3.5%.
Why did debt payments rise in 2026?
The Township’s annual budgeted debt payments have also grown, from approximately $6.2 million in 2021 to $13.94 million in 2025 and $18.53 million in 2026. The one-year increase is about 32.9%.
Two items account for nearly all of the 2026 increase. The amount budgeted to pay down short-term notes rose by about $3.2 million, to $9.9 million, and interest on those notes rose by about $1.5 million, to $2.7 million, because the Township is carrying a much larger balance of notes. Payments on its long-term bonds stayed about the same.
Part of those payments covers school projects. The Board of Education reimburses the Township for that share, and the 2026 budget expects approximately $9.54 million from the district, up from $7.3 million in 2025. Those reimbursements come from the school district’s budget, which is supported by the school portion of the property tax.
After accounting for the reimbursements, the Township’s own debt payments still increased by approximately $2.34 million in 2026.
Moody’s reviewed the increased debt and continued to consider it affordable, though above average compared with similar governments nationally.
What happened with the $87.3 million borrowing in July?
East Brunswick issued approximately $87.3 million in short-term notes in July 2026.
That does not mean the Township took on $87.3 million in entirely new debt.
Approximately $77 million of the issuance replaced existing notes that were coming due, while approximately $10 million represented new borrowing for projects.
The Township also paid down a similar amount of existing notes using available funds, leaving its total outstanding notes slightly lower after the transaction.
This distinction matters when examining municipal borrowing because renewing existing debt is different from adding the entire amount as a new obligation.
Is East Brunswick Using Its Reserves?
Yes. Like many municipalities, East Brunswick uses a portion of its accumulated surplus as revenue in its annual operating budget.
The adopted 2026 budget applies approximately $8.55 million in reserves to help fund operations and limit the amount that must be raised through taxation.
That is nearly twice the amount appropriated in the 2025 budget.
Moody’s reported that Township management expects reserves to decline by approximately $4 million during 2026. Moody’s also noted that the anticipated decline comes as the Township makes “very large additional principal pay-downs,” which it said could be pulled back if needed.
Debt payments are exempt from New Jersey’s 2% cap on property tax levy increases, so they can be passed directly to taxpayers. In 2026, the budget instead relied on a larger use of surplus, up about $4 million from 2025, along with the higher Board of Education reimbursements. The amount raised through the municipal-purpose tax rose by only about $430,000, from $43.58 million to $44.01 million.
That approach depends on reserves remaining available.
Using reserves does not automatically indicate financial trouble. Municipalities regularly appropriate portions of their fund balances during the budget process.
The important considerations include how much remains available, whether the use is sustainable, and whether the municipality can continue meeting its financial obligations.
What Do the Reports Say About Property Taxes?
East Brunswick residents receive a property tax bill that includes several separate components.
The municipal-purpose tax supports Township government operations. Other portions fund the public school district, county government, the library and open space.
Eyes on EB calculated the municipal-purpose tax rate from the adopted budgets and state property tax records. By that calculation, the rate, which does not include the separate library and open-space taxes, has generally increased by approximately 1% a year or less since 2021.
The library tax, which is calculated separately under state requirements, has experienced larger increases.
The school portion has accounted for the largest share of the increase in East Brunswick’s overall property tax rate in recent years.
Moody’s credit rating considers the Township’s financial position, but it does not determine whether individual homeowners are paying too much in property taxes or whether particular spending priorities are appropriate.
Those are separate questions from the municipality’s ability to repay its debts.
What Can Residents Take Away From the Reports?
The financial records provide several useful findings.
East Brunswick continues to hold a strong Aa1 credit rating, and Moody’s most recent credit opinion maintains a favorable assessment of the Township’s financial management.
The Township has built substantial financial reserves over the past several years. At the same time, borrowing and annual debt payments have increased as the municipality has undertaken capital projects, led by the ice arena. Net debt has roughly tripled since 2017, and budgeted debt payments rose about a third in 2026, although net debt remains well under the state’s borrowing limit and part of the payments is reimbursed by the Board of Education.
Moody’s is aware of those obligations and, as of its June 2026 review, considers them manageable.
The records also show that the Township is using a larger portion of its accumulated surplus in the 2026 budget, which has helped keep this year’s municipal tax increase small. Township management expects some reduction in reserves, according to Moody’s.
None of these figures, standing alone, tells the complete story of East Brunswick’s finances. Together, they provide a clearer picture of the municipality’s financial position, including its strengths, obligations and future considerations.
For residents interested in reviewing the information themselves, the original Moody’s reports and Township financial documents are publicly available.
Eyes on EB reviewed these records because residents were asking about the recent post. Our goal was to provide the underlying information so readers could better understand what Moody’s actually reported and draw their own conclusions.
Sources: Moody’s credit opinions dated June 26, 2023, and June 22, 2026; Moody’s rating announcements from 2019 through 2026; East Brunswick Township audits from 2021 through 2025; adopted municipal budgets from 2021 through 2026; annual debt statements, including the Township’s 2017 supplemental debt statement; July 1, 2026, note offering documents; and the October 17, 2026, East Brunswick Democratic Organization Facebook post.
