The bond rating agency Moody’s Investors Service Inc. reaffirmed Wednesday the Town of North Hempstead’s Aa1 bond rating for the fifth time in the last three years, the highest in the town’s history.
The Moody’s report also said the town’s financial outlook was upgraded from “stable” to “positive.”
“The positive outlook reflects our expectation that the town will increase reserve levels modestly in fiscal 2015 and maintain balanced operations going forward,” the report said. “The outlook also reflects the town’s conservative fiscal management practices, which will support healthy operating performance and maintenance of a strong financial position, as well as full payment of pensions beginning in fiscal 2017.”
The Moody’s assessment highlights the town’s positive financial outlook and covers its $13.86 million in bonds.
“The upgrade in our outlook by Moody’s reflects the hard work by this administration to budget conservatively and to keep the town on a solid financial footing, while maintaining the services that our town residents expect and deserve,” Town Supervisor Judi Bosworth said in a statement.
According to the report, the town’s Aa1 rating, which is second-highest to a AAA rating, was given due to a multitude of factors including budgeting and financial planning efforts.
“The rating reflects expected maintenance of a solid financial position given management’s conservative budgeting practices,” the report said. “The rating also factors the town’s enhanced long-term financial planning and internal controls, a large and affluent tax base and a declining debt burden.”
Bosworth said the town’s financial management practices has reduced debt by $30 million over the last two years.
Town Deputy Supervisor Aline Khatchadourian told Newsday the town has been borrowing less money than it is paying off and its five-year capital plan reflects debt reduction strategies.
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