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Moody's Maintains North Hempstead’s Top Aaa Rating

 September 14, 2017
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Moody's Maintains North Hempstead’s Top Aaa Rating

Credit rating agency cites Town’s ‘conservative budgeting, solid financial reserves & low debt burden’

North Hempstead, NY – North Hempstead Town Supervisor Judi Bosworth announced today that the independent Wall Street bond rating agency Moody's Investors Service has assigned an Aaa rating to the Town’s $26.4 million Public Improvement Serial Bonds (Series C and D), the highest rating by Moody’s. Moody’s also maintained an Aaa rating on the Town’s outstanding general obligation limited tax (GOLT), with a stable outlook. The Aaa rating will save taxpayer dollars, as the Town will likely experience more favorable rates on bonds.

Moody’s upgraded the Town’s bonds in March of this year to Aaa, the highest in the Town’s recent history and the highest a municipality can obtain.

The Moody’s opinion stated: “The rating reflects the town’s conservative budgeting which supports balanced financial operations and maintenance of solid financial reserves. The rating also factors the Town’s enhanced long-term financial planning and internal controls, large and low debt burden.”
“The Town’s continuation of a Triple A rating is the result of the steady and focused efforts by my financial team to watch each and every tax dollar, budget conservatively and reduce debt,” said Supervisor Bosworth. “It’s extremely satisfying to see this reflected in Moody’s opinion. It will translate into savings for our hard-working taxpayers.”

Moody’s also cited:
• Management’s conservative budgeting and strong financial management practice have resulted in stable fund balance levels
• In recent year’s management has kept the property tax increase within New York State cap, a constraint they expect to operate going forward.
• The Town’s Solid Waste Management Authority, of which the Town manages and provides financial assistance, has improved its financial operations in the past few years and increased its fund balance from a negative $293,092 in 2010 to a positive $2.7 Million in fiscal 2016.
• The Town debt burden has been lowered in recent years and remains stable
• The Town ended fiscal 2016 with available reserves in its operating funds

In its report, Moody’s also stated that “Town’s management is strong, with balanced budgets that no longer include pension amortization, a lack of one-shot revenue sources, conservative budgeting practices, and a debt management service plan. Management actively monitors budget performance across funds throughout the year to ensure balance operations and makes changes to expenditures as needed.”


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