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Moody’s gives Garden City top bond rating

Retail, commercial, industrial and manufacturing establishments cannot be

Retail, commercial, industrial and manufacturing establishments cannot be open for business from midnight to 6 a.m. under a law passed, 8-0, at a June 6, 2013, Garden City board meeting. (Aug. 9, 2011) Photo Credit: T.C. McCarthy

Moody’s Investors Service once again has given Garden City Village an Aaa rating on its public improvement serial bonds for 2012.

Moody’s assigned the Aaa rating — considered the highest grade with the best quality and a minimal credit risk — to $6 million in general obligation bonds to be sold March 22. The village also received the Aaa rating in April 2010. Before that, the village had an Aa1 — the second-highest grade — dating back to 2002.

“We are delighted that Moody’s has determined that they are retaining the rating of Aaa,” said Robert L. Schoelle Jr., the village’s administrator and treasurer. “We worked very hard to provide the highest level of municipal services and be prudent with financial planning.”

The international credit rating agency reported that “the bonds are secured by the village’s general obligation, unlimited property tax pledge.” The proceeds of the bonds will be used to finance several projects including improvements to the village’s pool complex, resurfacing parking fields and repaving roads, according to the report released Thursday.

Moody’s affirmed the Aaa rating reflects a very large and strong tax base bolstered by “substantial wealth.” It also incorporates stable finances, balanced budgets, and a low debt burden that is expected to decline.

Moody’s report noted the village’s challenges are possible long-term declines to assessed valuation because of tax certiorari — proceedings initiated by taxpayers to challenge their property tax assessments. The rating could go down if there are continued declines in assessed valuation arising from tax appeals and due to multiyear reserve drawdowns.



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