North Hempstead maintains highest possible bond rating

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North Hempstead maintains highest possible bond rating
Moody's Investors Service assigned North Hempstead an Aaa bond rating, the highest allowed. (Photo courtesy of the supervisor's office)

North Hempstead has maintained its Aaa bond rating for the 13th year in a row, according to Moody’s Investors Service.

The organization cited stable financial operations, healthy reserve levels and a strong economic profile for the town while lauding its conservative fiscal management. Credit strengths also included the town’s large tax base with high income and local employment opportunities.

The rating specifically reference’s the town’s $21.7 million in Series A Public Improvement Serial Bonds and $396,000 in Series B bonds.

Series A bonds provide financing for various capital projects and Series B bonds will finance bond anticipation notes to fund litigation.

“The stable outlook reflects the town’s conservative fiscal management practices, which will support continued healthy operating performance and maintenance of a strong financial position,” Moody’s said in a release.

North Hempstead Town Supervisor Jennifer DeSena, in a statement, said the highest possible rating reflects town officials’ dedication.

“I am extremely proud that the Town has once again received a Aaa bond rating from Moody’s,” DeSena said. “This rating is the thirteenth consecutive affirmation of the Town’s Aaa Bond rating, and is indicative of the hard work, dedication, and discipline throughout budget season. The Aaa rating is the highest a Town can achieve and will produce significant savings in the long run. I’m pleased that the Town was able to accomplish this while also unanimously passing a 5% tax cut in this year’s budget.”

Moody’s said an increase in long-term liabilities and the “significant” decline in reserves or liquidity are factors that can lead to downgrading the current rating.

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