I’m delighted to announce that Standard & Poor’s has reaffirmed Clarkstown’s AA Bond
Rating, along with a “Stable Outlook” for Clarkstown’s finances. This rating is based on
a multitude of financial metrics including 3 straight years of posting a budget surplus,
responsible spending, strong fiscal stewardship, and keeping overall debt manageable.
The rating also cites Clarkstown’s strong and growing local economy as a factor in
assessing the Town’s current rating and expected fiscal health going forward.
Our bond rating is a crucial factor in the Town’s overall financial picture. 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 new projects, building permits issued, and population trends.
After taking all these factors into consideration, Standard & Poor’s issues a rating from
the highest level of AAA to the lowest rating of D. Clarkstown received a second straight
annual rating of AA, which is on par with the highest municipal ratings in the area.
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.
In maintaining its high credit rating assessment of the Town of Clarkstown, Standard &
Poor’s cited a number of positive factors. First, S&P recognized the Town’s sustained,
positive budgetary performance. This has been one of my administration’s primary
goals, representing a remarkable turnaround from years of operating deficits and
dwindling surplus levels. When I first took office, the Town 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 strong budgetary
performances, rising surpluses, and a strong economic growth plan, Clarkstown was
removed from the State’s fiscally stressed list. In 2023, we are in a much better place
with the bond rating to prove it.
S&P also cited a number of promising metrics that I’m proud to share with you. Our
report notes that the Town has been rebuilding reserves from previous deficit levels. It
further states that the town has structurally balanced its budget through consistent
revenue growth without the aid of one-time revenue sources and that Clarkstown
continues to see residential and commercial development, which will likely support
property tax growth, its main revenue source. The report praises management’s
commitment to growing revenue and suggests that it expects our local economic growth
to continue. As always, I remain committed to financing infrastructure projects that
enhance the quality of life for Clarkstown residents and businesses.
I’m truly proud to say that Clarkstown’s finances have never been in better shape and
I’m immensely proud of the progress that we’ve made in the past eight years. Upon
taking office, the Town was in a deficit and our reserves had been drained over many
years. This year, we expect to post our 4th consecutive year of adding to our reserve
fund. S&P’s continued optimistic outlook of the Town’s finances and recognition of its
rock solid economic foundation in particular is great news. At a time when interest rates
are being driven higher due to inflation, Clarkstown is well positioned to secure lower
interest rates than many other borrowers are able to, which delivers real value for
Clarkstown taxpayers today and into the future.
