A new long-term bond rating by Standard and Poor’s Global Ratings will help New Hartford taxpayers save money, New Hartford Town Supervisor Paul Miscione said.
On March 31, S&P assigned its AA-/Stable long-term rating to the town’s $9 million series 2022 general obligation public improvement bonds, while affirming its AA-issuer credit rating and long-term ratings on the town’s existing general obligation debt.
“The positive bond rating helps taxpayers get lower interest rates because of the demand for the bonds that are being sold in the market,” Miscione said.
The town’s faith-and-credit pledge, payable from revenue from the levying of ad valorem taxes levied on all real property within its borders, secures the bonds, S&P said.
“New Hartford historically produces balanced operations, which continued in 2020, despite the impact of temporary revenue losses because of the pandemic,” S&P said in its report. “Due to the town’s location in relation to several transformative economic development projects in the health care and technology sectors, management anticipates residential growth reversing previous trends of population decline.”
S&P said the rating outlook is “stable.”
The credit agency said the town’s status as the primary sales tax generator within Oneida County helps New Hartford continue to experience a strong commercial and retail presence.
Preliminary sales tax revenue projections across all town funds are 29% above budget levels, according to S&P, thus further stabilizing the town’s finances.
“Based on the town’s track record of balanced operations and conservative budgeting assumptions, we believe financial performance will remain stable over the next two years,” S&P said.
Town officials plan to use the bond proceeds, along with approximately $250,000 in available funds to redeem $6.8 million of the existing bond anticipation notes that matured at the end of April and use $2.5 million to permanently finance new minor capital projects and purchases.
Ed Harris is the Oneida County reporter for the Observer-Dispatch. Email Ed Harris at EHarris1@gannett.com.