BY Erica Schwartz
The Town of Oyster Bay recently earned its ninth credit rating increase and positive outlook designation from Moody’s Investors Service, a Wall Street credit rating agency.
Oyster Bay Supervisor Joseph Saladino said the town has gained notice among independent Wall Street agencies due to its commitment to “watching the bottom line” and providing the highest-quality services in its history.
“Independent Wall Street agencies continue to award the Town of Oyster Bay with upgrades for our commitment to watching the bottom line, cutting and freezing taxes, and delivering the highest quality services the Town has ever seen,” he said. “Despite inheriting a junk bond rating from the prior administration, our success and financial turnaround is the result of restricting spending, paying down debt and strong financial management practices.”
This upgrade brought the town from an A1 rating to an Aa3, raising it to the second-highest bracket of credit ratings.
According to Moody’s scale, ratings within the Aa tier are considered “high quality” obligations and subject to “very low” credit risk. Aa3 status is three steps away from earning a perfect score and being designated Aaa status.
In the initial report, Moody’s Investors Service said this upgrade “reflects the continued improvement in the town’s available reserves and liquidity, both of which are at their highest points in over a decade.”
This is the ninth credit rating increase the town has received since Saladino took office in 2017.
The town cut property taxes for residents in 2018, freezing the subsequent six budgets to maintain the property tax cut.
This “taxpayer first” approach, as Saladino’s office described it in a press release from his office, has saved residents $9.1 million overall. An independent financial audit this summer showed the town had produced its sixth consecutive surplus budget.
Saladino said the rating upgrade will benefit residents, saving them money when financing future capital projects.
“This ninth Wall Street credit rating upgrade will save residents substantial money as the town will pay significantly less in interest expenses when bonding for road repaving, park improvements and other critical infrastructure work,” he said.
