Moody's Upgrades Rockland's Tax Anticipation Notes

Moody’s Investors Service rated Rockland's Tax Anticipation Notes MIG 1, a clear sign that the fiscal policies he put into place are paying off for taxpayers. The MIG 1 rating is the highest short-term rating assigned by Moody’s to Notes.

This is a first for Rockland County since its severe deficit position in 2011 and comes on the heels of its seventh consecutive bond rating increase in March.

“This rating is great news for Rockland County,” said County Executive Ed Day in an announcement. “It just speaks to exactly what Moody’s said, the accuracy of our projections and budgeting has led to an improving financial position. Plain and simple, this is a win for taxpayers.”

The upgrade report from Moody’s gave Rockland a stable financial outlook and noted that, “the stable outlook reflects our expectation that reserves and liquidity will continue to improve in the near-term driven by strong budgeting [and] careful expense management.”

“That will only happen if we stay the course and continue what we have been doing all this time. We spend our money like the residents of this county spend theirs. We are conservative, we do not take unnecessary risk with people’s money, we will not engage in nor allow for a reckless return to the budgeting practices of the past,” said Day.

What's a Tax Anticipation Note? Counties are required by state law to make local taxing districts such as villages, towns, and school districts “whole” as they, and the county itself, await tax payments. The county takes out a tax anticipation note, or TAN, which essentially serves as a bridge loan, to ensure the taxing districts have enough money to operate in the meantime.

For a $60 million TAN the difference between a MIG 1 rating and our previous rating (unrated) is a savings of approximately $90,000 on debt service, according to Rockland Commissioner of Finance Stephen DeGroat.

“Once again the hardworking residents of Rockland County are being rewarded for the fiscal actions put in place by the Legislative and Executive branches," said Rockland Legislature Chairman Toney Earl. "We anticipated a very positive bond rating in the wake of last month’s improved credit rating from Moody’s, and I’m happy to say, we have not been disappointed. The overall national and local economies continue to improve and by extension, sales tax and other revenues remain steady. Moody’s has noted the Legislature’s fiscally conservative budget practices, including the bipartisan and unanimous adoption of the 2018 Amended County Budget and its realistic projections. Many people are playing a role in the County’s continuing success story and I thank everyone for their ongoing efforts.”

Moody’s also reaffirmed Rockland County’s A2 Bond Rating and noted a stable outlook.

The County Executive said that Rockland's improved finances are a result of the efforts of many people. "We thank all of our talented and hardworking county employees, who have learned to do things differently, often more efficiently," he said.

The upgrade report from Moody’s included factors that could lead to a future downgrade including a “return to aggressive budgeting, particularly for economically sensitive revenues.”

"Every action we take in county government will not only be designed to stay the course but to improve our course as we continue the renaissance of Rockland County," concluded Day.