These are difficult economic times for municipalities around the nation. Many municipalities & businesses have seen their bond ratings reduced. I am very pleased to report that Standard & Poors has maintained the towns AAA bond rating. The bond rating was increased last year to the highest rating possible. Approximately 3% of all localities in the nation have this bond rating. The strong rating provides real benefits to taxpayers and reduces our borrowing costs.
The members of the Town Board (Sonja Brown, Diana Juettner, Kevin Morgan, Francis Sheehan) & I pledge to work hard to continue to run the town in the most fiscally prudent manner. We are currently working on the 2010 budget --and are looking for ways to reduce the costs of operating our government.
PAUL FEINER
Greenburgh Town Supervisor
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From: Bart J. Talamini
Sent: Wednesday, August 19, 2009 1:37 PM
To: Town Board
Subject: Bond Sale 11,459,103
The Town of Greenburgh sold its $11,459,103 Series 2009 A General Obligation Bonds, to Roosevelt & Cross, at a true interest cost of 3.1938% today at 12:00pm.
Standard & Poor’s maintained the Town’s AAA credit rating on this issue and affirmed its AAA credit rating on the Town’s outstanding debt.
Moody’s maintained the Town’s Aa1 credit rating on this issue and affirmed its Aa1 credit rating on the Town’s outstanding debt.
BT
Bart Talamini
Comptroller
Town of Greenburgh
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30 comments:
I am impressed!
Now that the shock has worn off,
do you suppose it would be possible for the Town to post on the official website the representations that were made to the bond rating Agencies.
There used to be a margarine commercial which used this tag:
"It's not nice to fool Mother Nature".
Of course Mother Nature wasn't represented by competent Counsel. Hopefully, Mr. Talamini is.
This IS wonderful news and SHOULD be shared throughout our town!
Hal,
Why does Talamini need Counsel?
What do you know that we don't/should know or better yet what misrepresentations did he make?
The bond rating of the town has gone up a few times during the Feiner administration. It would be difficult to keep fooling bond rating agencies year after year. The town is doing something right.
One of the representations made to Moody's, which gave the Town its second highest rating, was that "future economic expansion is expected from development of a bio-technology facility by OSI Pharmaceuticals, Inc., and officials report the project will add approximately $1 million in building permit revenue and provide over 350 new jobs during the next few years." That representation is probably fairly indicative of the rosy scenario town officials provided the rating agencies. Instead of getting its news from Feiner, perhaps town residents should take a look at the press releases issued by the rating agencies themselves and they'll get a pretty good picture of what was disclosed and not disclosed.
In reviewing Moody's press release, it's apparent that in order to retain the Town's bond rating, the Town Board had to agree not to adopt a capital budget for 2009. The press release makes reference debt service continuing to "make up 9.9% of operating expenditures" and notes that the town "expects to adopt an updated capital budget in 2010."
Funny, how the Town's unprecedented decision not to borrow money for capital projects in 2009 -- the money being borrowed in the current bond issue is mostly to repay $11.5 million in library debt which was borrowed from other town funds -- is not even mentioned. The absence of a capital budget for 2009 means that projects that normally get funded out of borrowing, such as road maintenance, curbing, police cars and equipment and the like, will get deferred. That might make Moody's happy; the question is will residents notice?
The other thing that's missing from Moody's analysis is any projection of increased payments required next year for employee benefits, pension and health. Town officials must have assured Moody's that they do not expect this to be a material expense that will eat significantly into the fund balance (reserves). Either that or they'll just hike the taxes and see if anybody cares.
Remember dear voters. It was you who voted for the library, not Feiner. If there is a pothole in front of your house, call Bob the Plumber.
VERY Impressed......& congratulations!!!!
During these difficult times more than 35% of all municipal issues are getting their new issues ratings decreased versus previous isues.
Good job Comptroller and Supervisor!
Is Anon at 10:02 pm saying that in order to get back at voters who supported the library renovation over Feiner's objection, Feiner's plan was to suspend road repair, curbing, and cut the police, sanitation, snow and leaf removal budgets -- all to maintain the town's bond rating?
well
that about sinks pat weems
pat - next time start running two years before the primary
I give Weems plenty of credit in her quest to run for supervisor.
Heaven knows we need a change.
If she is not on any political line I will write in her name.
credit for what
submitting false signatures?
weems did not run
she stalled at the gate
she never put together a slate or an organization that had any appeal townwide
in fact, i never heard weems say she was going to change anything other than the clock
if weems had run, feiner's victory would have been bigger than his clobbering win over .... whats her name.... suzanne berger
anyone ever see her at town hall?
Hal,
Anonymous on 8/19/09 at 7:37 pm asked you for specifics.Do you have any or were you simply generating misrepresentations of your own? Please tell me that you have facts or I'll have to write to Mr Talamini and recommend a couple of good libel lawyers for his counsel.
Every year the towns bond rating is high. Three or four times during the Feiner administration the bond ratings have been increased. The town now has the highest rating possible.
Some bloggers always suggest that the town distorted facts and did not deserve the fantastic ratings. I say---you can't fool S & P and Moody's every year for 18 years!
Good job, town officials.
Is this the same rating agency that gave AAA ratings to the mortgage backed securities and the credit default swaps that tanked the economy?
During the past few months some of you were pointing fingers at the town predicting that the town would lose the AAA bond rating. Your hopes did not materialize.
Dear Detective Double Dip aka 7:37&8:51, did you forget about?
"do you suppose it would be possible for the Town to post on the official website the representations that were made to the bond rating Agencies."
No Hal. You will NOT let us forget
8/21/2009 10:33 AM
yes it is,(cmbc) house of cards
cnbc
Read the blogs archives. Many of the citizen bloggers were rejoicing over the thought that the town would lose its AAA bond rating. Sorry to upset you with the newss that independent analysts think the town is run prudently.
boycott scotland
1) What were formerly known as "independent" analysts have a few problems in Washington explaining their role in the mortgage fiasco.
2) "Independent" means they were paid by the Town.
3) CMBS: Commercial Mortgage Backed Securities, rated not only as a package, but also by layered tranches and consisting of the underlying securities which were collected and packaged into a pool and sold to investors. All of this outstanding work signed off on by independent, analysts -- often employed by Standart & Poors and Moodys.
Oh Hal.... Tell us your consiparcy theory for this one. You always seem to keep me entertained.
Perhaps HBO can produce a special around you and those theories.
Perhaps the Town, in the interest of "open government" would like to post all of the correspondence between and among Town officials and the rating agencies.
With the actual documents in front of the public either the speculation would end or the indictments would begin.
As your re-election is in no doubt Mr Feiner, how about returning to the practice of real open government?
Start with the ratings agency matter and then open the Stop 'n Shop documents, then the Metz Reservoir matter, then Dromore Road, the Fortress Bible fiasco (including a copy of your testimony to the judge) and work your way back to, say, the deal at Taxter Ridge.
Finally, put a measure on the ballot to change the Town charter and make the term of office for the Supervisor life.
Dear fanboy @8:13,
You don't need a premium cable channel (HBO) to be "entertained". You have this blog and Town Board meetings for free.
And included in this package you also get Detective Double Dip.
Hey Mr. Obnoxious @ 9:07
You seem to rely on name calling. You have no platform nor do you have any idea on how to debate. You are only concerned with standing on a platform of rude behaviour. Your mother should have used more soap in your mouth.
I don't think any resident would rejoice in a declining bond rating. The point is that the rating criteria and the agencies doing the rating are questionable at best. These are the same guys who rubber stamped Madoff and ignored the warnings from an insider.
The bond rating has little to do with the fiscal future of our Town. It simply means the Town will find it easier to borrown money against bonds. Is that a good thing? Not really. It means that as long as they can prove they can repay the bond issues they get the high ratings. They're not afraid of raising our taxes over 100% since Feiner's been in office. If they resigned to continued double digit tax increases to repay the debt, Moody's and S&P will continue to issue AAA ratings...they don't care how high our taxes are, they only care that the debt is repaid.
Anon at 11:54 is absolutely right. All the nonsense on this blog is just that -- nonsense.
As long as Moody's looks at Greenburgh and sees that Greenburgh is able to raise the amount needed to pay off the bonds, the internal finances of the town don't matter. Right now that is what Moody's sees. Be thankful.
When the situation changes (Fortress Bible, the fund balance is exhaused, Edgemont becomes a village, which is possible, sales and mortgage taxes continue to decline, which is also possible, and other such things)then Moody's will change the rating because the ability to repay bonds will be threatened.
So save all this back and forth silliness.
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