NEW CITY – Standard & Poor’s has reaffirmed the Town of Clarkstown’s “AA” bond rating and maintained the town’s financial outlook as stable.
The rating, which reflects the town’s creditworthiness, can affect the interest rates municipalities pay when borrowing money for capital projects.
Clarkstown also plans to reduce its annual borrowing, with overall debt expected to decline by about $4 million. The town projects that 75% of its debt will be paid off within 10 years.
In its report, S&P cited what it described as proactive management and established budgeting practices designed to maintain operational balance. The agency also noted the town’s efforts to develop new revenue sources, an expanding and diverse property tax base, access to the New York City regional labor market, economic development, and a history of increasing general fund reserves.
Clarkstown has received an “AA” rating from S&P for six consecutive years, according to the town.
“Clarkstown’s finances have never been in better shape, and I’m immensely proud of the progress that we’ve made,” Supervisor George Hoehmann said. “S&P’s continued optimistic outlook of the town’s finances and recognition of its rock-solid economic foundation is great news.”
Hoehmann said the rating could help the town secure lower borrowing costs and support infrastructure projects.
Bond-rating agencies assess municipalities based on factors including financial performance, tax-base growth, vacancy rates, median age and income, debt per capita and anticipated future development.
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