Moody’s upgrades city’s credit rating again BY KATHLEEN MOORE Gazette Reporter Reach Gazette reporter Kathleen Moore at 395-3120 or moore@dailygazette.com
The city has regained its onceprecarious hold on a respectable credit rating, Moody’s Investors Services announced Tuesday. The agency bumped Schenectady’s rating up a notch, to Baa1. That’s one step below A — but still quite good, Finance Commissioner Ismat Alam said. “Obviously the mayor’s goal is to go back to A, but Baa1 is very, very respectable,” she said. The better rating means lower interest rates for everything the city has to buy, from police cars to bonds for paving projects. Last year, the city saved $70,000 on its bond premiums because of a Moody’s credit rating upgrade, and Alam said she had never seen such low interest rates for the city’s purchases. This year, she said, interest will be even lower. Councilman Mark Blanchfi eld, who chairs the finance committee, is expecting banks to be eager to bid on the city’s bonds at the next bond sale. “This is tremendously good news. It’s making us a much better bet in the market and most signifi - cantly, reduces the amount of interest — it does save us a signifi cant amount of money,” he said. The city was last at Baa1 in 1999, before fiscal mismanagement led the city into deficit and ended with the city rated at junk bond status in 2004. Moody’s has now raised the city’s rating five times in four years, a highly unusual occurrence. “If we have one or two good years, they normally wouldn’t raise the rate,” said Councilman Gary McCarthy. “They don’t make changes based on one good year or one bad year.” But Moody’s analysts said Schenectady had improved so significantly that it deserved the fast track. In the past three years, the city has built up a $10.4 million cash-flow cushion across its four funds (the general fund as well as water, sewer and golf) and has cut enough expenses to create “healthy” surpluses, the analysts’ report said. The report also said that a “key consideration” in the rating upgrade was the city’s increased ability to raise taxes. The city’s tax rate is at 67 percent of the state’s constitutional limit, down from a high of 86 percent in 2005. Moody’s analysts attributed the change to a growth in the city’s tax base. Residents have also seen a 2.1 percent tax cut. The analysts added that they expect moderate growth in the city’s $2.1 billion tax base, partly because of General Electric’s announcement last fall that it will invest $39 million to expand its Renewable Energy Division in the city. The Moody’s report also gave the city a better score on its debt load, praising Mayor Brian U. Stratton for paying off old debt quickly. Most recently, Stratton announced that he will pay off a $1.8 million debt from 2004, when the city was so strapped for cash that it couldn’t afford to pay its entire state retirement bill. Stratton will use part of the 2007 surplus to pay off the last of the debt. The city’s debt load is still above average — two and a half times the size of other New York cities — but it is now manageable, Moody’s analysts said.
Gee that's swell to raise your bond rating tax the residents at a higher rate just like the city has been doing for the last 5 years. Don't worry Sch'dy County will soon be the highest taxed county in the country.
Ronald Reagan's famous "there he goes again" expression of frustration seems appropriate for Schenectady Mayor Brian Stratton's recent burst of press releases claiming fiscal heroics. On occasion here, there has been criticism about his taking repeated bows and credit for extricating the city from the financial dumper. Schenectady has a $10 million surplus accomplished mainly on the backs of taxpayers. Stratton collected nearly that much by implementing double taxation for trash collection. The city has also received double the aid -- now $11.5 million -- from the state, which pickpocketed the money from taxpayers. Yet, the press releases praise his fiscal genius. One release finally gives credit to the taxpayers. In the last of 14 paragraphs he states, "Moreover, none of our success would have been possible without the cooperation and sacrifice of the citizens who supported our efforts every step of the way." To straighten the record, the garbage tax is confiscatory, not to be confused with citizen cooperation. I'm not the only one noticing Stratton is far from bashful when it comes to crowing. A Daily Gazette editorial last week regarding city finances said in part, "It seems this mayor can never get enough credit and will take it even when it isn't due."
The city has also received double the aid -- now $11.5 million -- from the state, which pickpocketed the money from taxpayers. Yet, the press releases praise his fiscal genius.
Well this sentence speaks for itself, huh? Amazing though how even though this is stated in the public media, Stratton and gang still has no shame!! And yet he continues to get elected. Go figure. I guess ya can baffle them with BS.
When the INSANE are running the ASYLUM In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. -- Friedrich Nietzsche
“How fortunate for those in power that people never think.” Adolph Hitler
The city has also received double the aid -- now $11.5 million -- from the state, which pickpocketed the money from taxpayers.
lots of butt kissin' for this money......but, I thought it was decreased to 7million as per the state.......it's called taking 1/2 cent from each taxpayer throughout the stated and sending it to whoever yells the loudest.......his stuttering helped.....
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