FOR IMMEDIATE RELEASE: September 5, 2018
MEDIA CONTACTS: Carole Trottere, Rebecca Cheng, Vicki DiStefano and Matt Leonenko | (516) 869-7794
Moody's Maintains North Hempstead’s Top Aaa Bond Rating
Credit rating agency cites Town’s ‘conservative budgeting & planning’
North Hempstead, NY – North Hempstead Town Supervisor Judi Bosworth announced today that the independent Wall Street bond rating agency Moody's Investors Service has again assigned a Aaa rating to the Town’s $8.7 million Public Improvement Serial Bonds, noting the Town’s “strong financial management marked by conservative budgeting and planning.” The Town has maintained a Aaa rating by Moody’s since 2016. Aaa is the highest rating a municipality can obtain.
Moody’s also maintained a Aaa rating on the Town’s outstanding general obligation limited tax, with a stable outlook. The Aaa rating will save taxpayer dollars, as the Town will likely experience more favorable rates on bonds.
“The Town’s continuation once again 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 manage 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.”
The Moody’s opinion stated: “The stable outlook reflects the town’s conservative fiscal management practices, which will support healthy operating performance and maintenance of a strong financial position…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.”
Moody’s also cited:
• The Town’s “strong socio-economic profile…improving housing values and ongoing construction…including residential and commercial construction in Port Washington, Garden City Park, Carle Place, Greenvale, Manhasset and Searingtown.”
• Healthcare as a significant driver of the Town’s stability with the majority of the top employers being hospitals or other healthcare institutions. Management notes that Northwell Health, one of the largest employers of the Town, continues to expand throughout the town.
• Reserves will remain healthy over the medium-term given conservative estimates on revenues and expenses and active budget management. Management is particular conservative on mortgage tax and sales revenues which are somewhat volatile revenue sources.
• The Town’s Solid Waste Management Authority, of which the Town manages and provides financial assistance, will have its revenue bonds paid off by the end of 2018.
• The Town did not defer pension costs in 2017 or 2018 and had no plans to do so going forward.