The independent Wall Street bond rating agency Moody’s Investors Service, Inc. has once again reaffirmed the Town of North Hempstead’s (TONH) strong fiscal outlook for 2015 by retaining the town’s Aa1 rating, with stable outlook, which continues to be the highest bond rating in the town’s history. This is the fourth consecutive Aa1 bond rating in two years.
In a release by Moody’s, the bond rating agency said, “The Aa1 rating reflects expected maintenance of a solid financial position given management’s conservative budgeting, especially of economically sensitive sales and mortgage tax…The town maintains a solid financial position, the result of conservative budgeting of revenues, strong internal controls and revenue augmentation in line with expenditure growth.”
Moody also commended the town on its continued reduction of debt. In the past year, the town has reduced debt by $22 million.
Moody’s also commented on the town’s financial future and said, “The town’s conservative management practices will support healthy operating performance and maintenance of a strong financial position, despite reported softening of the regional real estate market.”
“This endorsement, the fourth consecutive Aa1 bond rating in two years from Moody’s, reflects the hard work from this administration to keep the town on a solid financial footing,” said TONH Supervisor Judi Bosworth. “This bond rating enables us to keep low interest on our debt, lowering costs for taxpayers.” In addition, Moody’s stated that operations at the town’s Solid Waste Management Authority (SWMA) have continued to improve.