OCTOBER 30, 2007, FARMINGVILLE, NEW YORK – Brookhaven Town Supervisor Brian X. Foley today welcomed the ringing praise from the town’s two municipal bond ratings agencies received this week. Both Moody’s Investors Services and Standard and Poor’s praised the town for instituting sound, conservative fiscal policies over the past two years.
Both agencies reaffirmed the town’s strong bond rating, including the positive outlook that was reinstated last year.
“Moody’s positive outlook reflects…our expectation that the town will maintain its healthy financial position given the adoption of conservative budgetary practices and sound fiscal management policies,” Moody’s declared in the section entitled “Outlook.”
In its report to the town, Standard and Poor’s said that the so-called “tax holiday” in 2005 and 2006 had imperiled the town’s credit rating. “Under new management, however, the town has delivered structurally balanced fiscal 2007 and fiscal 2008 budgets that do not rely on onetime revenues for ongoing expenses,” the report stated. “The return to structurally balanced operating budgets adds stability to the town current rating.” The agency said it considered “Brookhaven’s management practices strong” under the firm’s Financial Management Assessment.
“I welcome the endorsement by the rating agencies of the town’s conservative fiscal policies,” said Supervisor Foley. “We are stewards of the people’s tax dollars and we manage that money with strict controls that ensure that taxpayers get their money’s worth.
“The bad old days of fast and loose budgeting are over. The town is back on a firm financial footing after previous practices damaged the town’s financial standing on Wall Street. We will continue our conservative fiscal practices that have saved taxpayers millions.”
“Wall Street has confirmed what we already knew—we have repaired the fiscal health of the Town of Brookhaven,” said Councilman Steve Fiore-Rosenfeld. “The bond rating agencies recognize that the Foley administration has put in place the sort of conservative fiscal practices that were sorely missing for so long. Protecting taxpayer dollars is our highest priority.”
“The (2007) budget also eliminated deficits that had accrued in four of the major special revenue funds,” said Standard and Poor’s. “The fiscal 2008 tentative budget is also balanced with the property tax rate remaining in place at the same rate as fiscal 2007…The town is managing the budget through cost savings initiatives, including the elimination of four positions, and insurance savings, among other expenditure savings.”
Moody’s predicted good things for the future. “Moody’s believes the town’s financial position will stabilize moving forward, reflecting a more conservative approach to fiscal management implemented by a new administration beginning with the 2007 budget,” the report stated.
“Going forward, Moody’s believes town operations will benefit from management’s intention…to focus on remediation of past audit findings, establishment of a detailed and comprehensive capital improvement program, implementation of standard operating procedures that include written financial policies, and implementation of ServiceStat, a data-driven management system tool to increase operating efficiency.”
Moody’s said the town’s “debt burden will remain modest,” and added that the town’s estimates revenues from the landfill and mortgage tax very conservatively.
The ratings agency also noted that the town is working to end the backlog of properties that have not yet been added to the tax rolls.
“Officials are working on a number of initiatives to more aggressively reflect new construction on the tax rolls and process backlogged tax appeals, which are expected to avoid net declines in assessed valuation in the future,” Moody’s stated.
Office of the Supervisor
One Independence Hill • Farmingville • NY 11738 • Phone (631) 451-6955 • Fax (631) 451-6677