At the head of the class!

Two leading Wall Street investment firms have affirmed the Town of Huntington's top bond rating, placing Huntington among the best fiscally-managed Towns in New York State.

Following a comprehensive review of the Town's finances, Fitch Ratings affirmed its "AA+" rating for Huntington's outstanding general obligation bonds and awarded an additional AA+ to its 2006 public improvement bonds.  With its AA+ ratings, Huntington is one of only two Towns in all of New York State with this designation.  Following a similar review of the Town's finances, Moody's Investment Services also commended Huntington by assigning its new bonds an "Aa1" rating and affirming an Aa1 on the previously-issued parity debt.  Huntington, along with the Towns of East Hampton, Southampton, and Hempstead, are the only Towns on Long Island to receive this outstanding top rating.

"When I first took office nearly 13 years ago, Huntington had one of the poorest credit ratings among all municipalities in New York State," said Town of Huntington Supervisor Frank Petrone.  "Today, I am enormously proud to report to our community that Huntington has one of the three highest ratings of any Town on Long Island, and according to the Fitch analysts, one of the two highest financial ratings of any Town in New York State. These high bond ratings will continue to benefit our residents with substantial tax dollar savings."

The new ratings were assigned to $14.9 million in public improvement serial bonds that will be issued by the Town to support a number of capital improvement projects throughout the Town.  The Town's top bond rating will help to procure a lower interest rate for the new bonds scheduled to be sold on October 26.  Because of the substantially higher rating earned since Supervisor Petrone came into office, Town of Huntington taxpayers will save close to $400,000 over the life of this latest bond issue.  In its review, Moody's analysts determined that the Town will retain its strong financial position given its prudent fiscal management:  "The Aa1 rating reflects the Town's strong financial position with healthy reserves and conservative management practices; growing economy with above average wealth levels; and low debt burden with manageable capital program."

When Supervisor Petrone first took office in 1994, the Town's rating with Moody's stood at Baa1 -near junk bond status.  Moody's Rating Guide describes the Town's current and affirmed ratings of "Aa1" as "high quality by all standards".  "Keeping our Town's fiscal ratings healthy is one of our Town Board's top priorities," said Town Councilman Mark Cuthbertson.  "This independent review by Wall Street experts confirms the fact that our financial management practices are tops in New York State."

Said Town Councilwoman Susan Berland, "This top distinction is a testament to our Town's unwavering commitment to ensuring that our taxpayers are getting the most benefit possible.  Huntington continues to lead by example.  We have stabilized taxes and slashed millions of dollars of debt, all while continuing to provide the community with the outstanding programs and services that they expect and deserve."

Fitch analysts warned that municipalities like Huntington, consistent with national trends, remain vulnerable to increases in health insurance and retirement costs, along with a potential softening of economically-sensitive mortgage tax receipts.  At the same time, however, the analysts praised the Town of Huntington for establishing designated reserve accounts to mitigate any potential adverse impacts.  "The prudent establishment of reserve funds to mitigate the impact on the Town's financial position, as well as a broad and diverse tax base, help limit the risk of this exposure," said that analysts.

As part of its fiscal recovery management plan, several years ago, Town Board members established individual reserve accounts to pay for designated items including retirement costs; capital projects; and environmental conservation programs.  From 1998 through this year, these reserve accounts enabled the Town to invest $30.7 million in numerous projects.  The total estimated interest savings as a result of not borrowing for these projects is roughly $11 million over the past nine years.

Said Town Councilman Stuart Besen: "While it's a feather in our cap to have such a high bond rating, the primary benefit of a strong bond rating is our ability to obtain a highly competitive interest rate when borrowing.  The net result is a substantial savings to our taxpayers.  Over the years, we have saved millions of dollars in interest costs due to our excellent financial condition."

Said Councilwoman Glenda Jackson: "All of us are so proud of our AA+ and Aa1 bond ratings.  We work very hard here in the Town of Huntington to keep our finances in check.  Wall Street has taken notice of our hard work and the high ratings are our reward.  My colleagues and I all have that same feeling you get when as a child you bring home a well-earned "A" on your school report card!"