POUGHKEEPSIE – Moody’s
Investor Service has upgraded Poughkeepsie’s “negative outlook”
associated with the city’s bond rating to “stable outlook.”
The bond rating agency retained the city’s Ba1 rating “reflecting
the city’s ongoing weak financial position marked by negative fund
balance and a very narrow cash position.” Moody’s also said
the rating “takes into account the above average fixed cost burden,
moderately sized tax base which continues to contract, low resident incomes
relative to the region and recent significant tax increase for fiscal
2017.”
The improved outlook “is a clear indication that our actions and
the results of our policies are being viewed favorably by the markets,”
said Mayor Robert Rolison. He pointed to the recent consolidation of the
city bus service with Dutchess County’s transit system, the city’s
earning of $3 million in special assistance from the state’s Financial
restructuring Board, “and our ability to resolve long-outstanding
collective bargaining issues with the various city-employee unions.”
City Finance Commissioner Marc Nelson said while the removal of the negative
outlook “is a huge deal,” it must be noted that the city still
faces a $12.5 million general fund deficit. But, he said the Moody’s
action is “a real vote of confidence in the direction in which this
mayor is leading our city.”
