Credit Rating Upgraded One Notch From ‘A+’ to ‘AA-‘ With Positive Outlook
Issued by: Town of Hempstead, Office of Supervisor Laura Gillen
(Hempstead, NY) June 14, 2018 - Town of Hempstead Supervisor Laura Gillen and the entire Town Board lauded the Town’s recent credit rating upgrade from Standard and Poor’s Ratings Service (S&P) from ‘A+’ to ‘AA-' with a positive outlook. This action follows the previous ‘A+ positive’ outlook the Town most recently received, and is based on the Town’s 2016 audited financials.
The report credits the Town’s “recent and projected strong budgetary performance and increased budget flexibility,” in company with “focus on controlling expenses through numerous internal controls,” such as the town's “implementation of several levels of approvals for purchases, as well as inventory control to prevent extraneous purchases.” The report also credits the Town for “maintaining a formal capital plan with funding sources identified.”
In delivering the financial outlook, S&P said “The positive outlook reflects S&P Global Ratings' expectation that the town will likely continue to balance growing expenses with a now-more-stable revenue stream, resulting in available reserves in the general fund reaching and maintaining at least 15% of expenditures, a level the rating service considers very strong.”
The report noted the Town's full valuation “continues to experience downward pressure due to ongoing tax appeals,” but officials are hopeful that economic development projects such as the recently refurbished Nassau Coliseum and the construction of Memorial Sloan Kettering Medical Center, should help further stabilize and grow the property tax base.
“I’m pleased that our financial outlook is positive and I’m confident that the fiscally-responsible measures, along with the economic development strategies my administration has been putting in place, will move us toward even more secure footing in the future,” said Supervisor Laura Gillen. “My administration, in partnership with the Town Board, is fully committed to streamlining the cost of government and moving transformative economic development projects forward in order to create the best environment for taxpayers.”
“I am delighted with the news of this bond rating upgrade. This positive step forward will save significant money for our taxpayers,” said Councilwoman Erin King Sweeney. “I remain focused on continuing our efforts to cut costs and reduce debt.”
“We had to make some very difficult financial decisions in 2016-17 and it is gratifying to see that our hard work paid off,” said Senior Councilwoman Dorothy Goosby. “This bond rating upgrade is good news for all Hempstead Town taxpayers. I would like to thank all the hard-working employees who helped make this possible.”
“Wall Street and Main Street have spoken,” said Councilman Edward Ambrosino. “Thank you to my fellow members of the Town Board and our Comptroller Kevin Conroy and his office for passing a budget that is fiscally responsible and continues our long tradition of quality services to the residents of our Town.”
"I'm delighted that our conservative fiscal approach has been recognized with a Bond Rating upgrade," said Councilman Bruce Blakeman.
“Doing more with less is a motto that I have lived by since joining the Hempstead Town Board and I couldn’t be prouder that the efforts that we made in the last two years have resulted in this bond rating upgrade,” said Councilman Anthony D’Esposito. “Not only has our rating been upgraded but we continue to have a positive outlook and I plan to do everything possible to ensure that these conservative fiscal policies are continued.”
“This bond rating upgrade is terrific news for Hempstead Town and its residents,” said Councilman Dennis Dunne, Sr.