Clarkstown's Financial Outlook Upgraded To Stable

NEW CITY, NY - Ratings agency Standard & Poor’s has upgraded Clarkstown's financial outlook from negative to stable.

"Standard & Poor’s optimistic outlook of the Town’s finances and economic conditions is great news for Clarkstown taxpayers," Clarkstown Supervisor George Hoehmann said in an announcement about S&P's review. "After many years of consistent deficit spending, we were able to right the ship with structural reforms that produced three years in a row of surplus, a feat that hasn’t been achieved in decades."

In positively revising its outlook, S&P cited Clarkstown’s “track record of consistent, fact-based budgeting, which has translated to an improvement in overall financial performance” as well as “growing commercial and residential development” as the foundation of Clarkstown’s economy.

S&P also reaffirmed the town’s "AA" bond rating.

This, the third-highest rating, applies to the town's existing bond debt as well as to upcoming bond sales.

The company's review of Clarkstown’s finances comes in advance of the town’s issuance of $12 million in bonds and the refunding of $7.9 million in bonds, moves that town officials said would produce budgetary savings for taxpayers.

“This strong bond rating enables the Town to secure low interest rates to finance infrastructure projects that enhance the quality of life for Clarkstown residents and businesses," Hoehmann said.

Standard & Poor's cited the following factors:

• positive operating trends over the past two years
• ongoing expenditure control on a line-item basis combined with prior reforms that generated ongoing expenditure savings
• strong recovery in economically sensitive revenues, including sales and mortgage taxes

S&P said those factors underpin the improvement in Clarkstown's financial position, despite the negative effects of the COVID-19 pandemic.