I’m delighted to announce that, once again, Standard & Poor’s has reaffirmed
Clarkstown’s AA Bond rating, an outstanding rating that ranks among the highest for a
municipality in the region. Standard & Poor’s also designated a “Stable Outlook” for
Clarkstown’s finances looking forward. The S&P’s annual report on our town cites a
number of highlights that factored heavily into the rating review, including strong
economic activity, sound management, a continued track record of posting surpluses for
the past four years, and improving reserves. This is outstanding news for the residents
of Clarkstown, and I’m incredibly proud of the financial turnaround that has taken place
since I became Supervisor.
Maintaining a high bond rating is critical to the Town’s financial health, as bonds are the
primary source of long term credit to a municipality. A higher bond rating means the
Town can finance capital projects at a lower cost in interest rates. The savings to the
taxpayers in interest can easily be in the thousands based on each million in bonded
expenditures.
Every year, municipalities are subject to a bond rating assessment performed by an
independent agency. The agency then assigns a credit risk rating to the municipality
based on a large number of financial metrics. The agency considers recent financial
performance, tax base growth, residential and commercial vacancy rates, median
resident age and income, and debt per capita. The agency will also look closely at
expected future performance based on factors such as new projects, building permits
issued, and population trends. After taking all these factors into consideration, Standard
& Poor’s issues a rating, with Clarkstown having now received an AA rating for three
years in a row.
When I first took office in 2016, Clarkstown was designated as one of New York State’s
most fiscally stressed towns and our bond rating had been downgraded twice under the
previous administration. In 2021, with a new record of strong budgetary performances,
rising surpluses, and a strong economic growth plan, Clarkstown was removed from the
State’s fiscally stressed list. In 2024, we are in a much better place with the bond rating
to prove it.
S&P cited a number of promising metrics that I’m proud to share with you. Their report
praises our strong management practices such as; seeking new revenue sources
through forward-looking planning; proactive, well-embedded budgeting practices to
sustain operational balance; a record of operating surpluses; and holding manageable
debt. The report noted the town’s economic development activities that should help to
support and stabilize our overall credit quality.
I’m truly proud to say that Clarkstown’s finances are in excellent shape and I’m
immensely proud of the progress that we’ve made in the past nine years.S&P’s
continued optimistic outlook of the Town’s finances and recognition of its rock solid
economic foundation in particular is great news. Even through an incredibly challenging
year where many of our costs were driven higher due to inflation, Clarkstown remains
well positioned to secure low interest rates, delivering real value for Clarkstown
taxpayers today and into the future.
