Brookhaven is on solid footing when it comes to its finances.
On Dec. 12 Town of Brookhaven Supervisor Ed Romaine (R) announced that S&P Global Ratings, an American financial services company, assigned its top-tier AAA long-term rating to the town’s series 2018A and 2018B general obligation bonds. The municipal bond is one that is secured by a local government’s pledge to use legally available resources, such as tax revenues, to repay bondholders.
“Our financial team has worked hard to achieve this AAA stable rating, but the real winners are the taxpayers who will save millions of dollars in the years ahead,” Romaine said. “We owe it to them to spend their money more wisely.”
S&P Global also affirmed the same rating on the town’s existing bonds. Based on recent local municipal bond sales, it’s been estimated this rating and bond sale has resulted in a $1.65 million savings for taxpayers, according to a press release from Brookhaven township. The town plans to finance construction of ambulance buildings, open-space acquisitions and other infrastructure projects with the bonds. The $20.8 million general obligation bonds will be amortized over 20 years, according to the release.
S&P cited in its AAA ranking a very strong economy, with the town’s access to a broad and diverse metropolitan statistical area and a local stabilizing institutional influence; strong management, with strong financial policies and practices; and solid budgetary performance with operating surpluses in the general fund and at the total government fund level in fiscal 2017. There was also budgetary flexibility and strong liquidity, among others.
According to S&P’s rating announcement, the Brookhaven’s rating is higher than the U.S. 10-year Treasury note. S&P believes “the town can maintain better credit characteristics than the U.S. in a stress scenario.”
Councilwoman Jane Bonner (C-Rocky Point), who is the board liaison to the town’s Department of Finance, said the rating is due to the town’s fiscally conservative ethos.
“The AAA Stable rating is clear evidence that our conservative fiscal policies have made a significant impact, saving taxpayers’ hard-earned dollars,” Bonner said. “I am proud to continue working with Supervisor Romaine and the finance team to help build on the success that we have already achieved.”
Town Councilwoman Valerie Cartright (D-Port Jefferson Station) credited the board with working toward balancing the budget and responsible fiscal management.
“We tackle this process with the goal of continuous improvement,” Cartright said. “Receiving the highest bond rating, once again, is a reflection of this effort.”