The Town of Fishkill reports some good news about its fiscal standing.
Moody’s Investors Service upgraded its credit rating on the general obligation debt of the town government, a $6.95 million portfolio, said town Supervisor Bob LaColla.
The rating rose by two notches to Baa1 from Baa3. The agency said this was due to “strong improvement to its financial position over the last year, including the elimination of a negative operating fund balance and improvement in liquidity.” The report specifically noted the town’s elimination of short-term borrowing to cover cash flow problems, LaColla said.
The new rating suggests the bonds are “medium grade and subject to moderate risk,” according to Moody’s scale.
He said some residents were concerned that the town’s 2013 tax increase would not be applied to the deficit and that the Moody’s report should be “reassuring.”
He noted that Fishkill had accumulated a $4.8 million deficit in the general fund by the end of 2011 and that the town had implemented a four-year plan to eliminate that deficit by the end of 2015.
“The town’s recently adopted budgets proved very conservative both in their revenue expectations and in anticipated costs,” LaColla said. “This led to eliminating the deficit a year earlier than planned.”