FOR IMMEDIATE RELEASE: September 12, 2019
MEDIA CONTACTS: Carole Trottere, Rebecca Cheng, and Matt Leonenko | (516) 869-7794
Moody's Maintains North Hempstead’s Top Aaa Bond Rating
Credit rating agency cites Town’s “conservative fiscal management practices”
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 $16.4 million Public Improvement Serial Bonds (2019 Series B), noting the Town’s “conservative fiscal management practices, which will support continued healthy operating performance and maintenance of a strong financial position.” The Town has maintained an Aaa rating by Moody’s since 2016. Aaa is the highest rating a municipality can obtain.
“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. “Moody’s also notes that a variety of development projects in the Town adds to the Town’s credit strength.”
Moody’s stated: “While the removal of the Long Island Power Authority (LIPA) from the tax roles resulted in a decline in full value for fiscal 2017, valuations rebounded in 2018, growing 5.3%. Management attributes the growth in the tax base to improving housing values and ongoing construction. A variety of development projects underway across the town’s base, including residential and commercial construction in Port Washington, Garden City Park, Carle Place, Greenvale, Manhasset and Searingtown.”
Moody’s also noted:
• The Town’s large $54.4 billion tax base, as of 2018, which will remain a credit strength moving forward given its close proximity to New York City, ongoing tax base expansion and a strong socio-economic profile
• Healthcare is 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, driving employment opportunities
• Management is particularly conservative on mortgage tax and sales revenues which are somewhat volatile revenue sources.
• Building permits continue to provide stable operations for the Town Outside Village Fund Personnel savings are expected to offset any projected negative revenue variance.