Schenectady County Legislature Chairman Anthony Jasenski and other Democratic leaders are downplaying a recent report by Moody's Investors Service that gave a negative outlook on the county's credit rating.
Jasenski said the county continues to maintain an Aa1 rating, Moody's second-highest bond rating.
While Moody's cited the county's "substantial, diverse tax base," and "favorable sales tax trend," the negative outlook means the county is at risk of a downgrade in its bond rating. The rating is on $48.6 million in parity debt, that is with collateral equal to the value of the debt.
Jasenski said County Manager Kathleen Rooney told him the report is a "great reflection on what we're trying to accomplish." Jasenski said that meant the county is controlling costs and is more efficient.
Moody's based its negative outlook on a "narrowed financial position as a result of general fund balance to fund county operations, as well as a large upcoming increase in long-term debt associated with a county-owned nursing home."
The report says the county "may be challenged in the near term to regain structurally balanced operations given increasing fixed costs including debt service."
Minority Leader James Burhmaster, a longtime critic of the construction of Glendale Nursing Home in Glenville, said the county needs to "let the nursing home go private, then we won't have these expenses."
"We keep putting off until tomorrow what we're doing today," said the Republican lawmaker. The new nursing home is scheduled to open in June.
Joe McQueen, the county spokesman, said the county requested this review from Moody's to refund existing serial bonds to reduce their interest rate. He said the anticipated saving from the refinancing is expected to save Schenectady County taxpayers $80,000.
The firm's highest rating is Aaa, followed by Aa1.
B3esides the HUMONGOUS debt for the nursing home which will probably bankrupt the county, the other thing that Moddys needs to look again at is the sales tax. Look at the comment about "favorable sales tax trend" above. Obviously Moody's didn't research enough. So how much downgrading occurs if Moody's found the UNFAVORABLE sales tax trend because the FACT is, the TURTH is, and the EVIDENCE shows that sales tax in Schenectady county is DOWN DOWN DOWN DOWN
Optimists close their eyes and pretend problems are non existent. Better to have open eyes, see the truths, acknowledge the negatives, and speak up for the people rather than the politicos and their rich cronies.
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