Nassau County’s Rating Improves; Sewer Authority Gets Downgrade
By Hank Russell
A recent report from S&P Global Ratings showed that Nassau County’s general obligation rating for outstanding debt was raised from AA- to AA, which the rating agency defines as “stable.” However, the county’s Sewer and Storm Water Finance Authority had its rating downgraded to AA from AAA.
S&P said the county’s improved rating “reflects strong finances and proactive budgetary management despite potential economic uncertainty on the horizon. In addition to improving reserves, the county has also done very well lowering its tax refund and legal liabilities by a significant amount, thereby boosting financial flexibility and buttressing itself against its financial vulnerabilities.”
But the rating agency did point out that, while sales tax revenues exceeded expectations and made up the brunt of the county’s coffers, they are “at risk of slowing.” Further, “departmental receipts are coming in weaker due to the softened real estate environment and as the county’s costs continue to increase,” the report said.
As for the Sewer and Storm Water Finance Authority, S&P noted it rated the authority “at the same level as our view of Nassau County’s creditworthiness given the authority’s nature as a non-operating entity and the county’s role in the appointment and confirmation of its governing body.”
According to the report, the authority was formed by the county Legislature in 2003 under the Public Authorities Law with the purpose of refinancing sewer and stormwater debt and financing future sewer and stormwater projects. Sewer and stormwater assessments are addressed as separate line items on the residents’ tax bills.
S&P foresees the county “maintain[ing an] operating balance and keep[ing] reserves at historically high levels. This is the result of budgetary policies designed to maintain long-term structural balance, along with the county’s commitment to improving reserves.”
According to County Executive Bruce Blakeman, this is the seventh rating upgrade they received from a rating agency. “These upgrades SAVE YOU MONEY each time we bond for road improvements, park upgrades and more,” he said in a statement. “Best yet, we’ve done all this WITHOUT raising property taxes. Promises made, promises kept!”