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Special Events and Honors

Posted on: June 20, 2019

Standard & Poors Global Re-Affirms Town’s AAA Credit Rating and Stable Outlook

Town Seal

Farmingville, NY -  Supervisor Ed Romaine has announced that S&P Global has assigned the Town of Brookhaven its AAA credit rating and stable outlook to the Town’s upcoming Bond Sale later this month that will refinance the Town’s outstanding 2011 Bond with lower interest rate. S&P Global also re-affirmed its AAA credit rating on the Town’s existing General Obligation Debt. S&P Global’s AAA credit rating, the highest designation that the agency issues, is an important and reliable indicator of the Town’s fiscal health determined by independent and objective fiscal monitors. A higher credit rating saves the town money on its borrowings in the form of lower interest costs.

In the report, S&P Global viewed the Town’s management team “as very strong, with strong financial policies and practices under our Financial Management Assessment (FMA) methodology, indicating financial practices are strong, well embedded, and likely sustainable.”

The report reflects S&P Global’s opinion of the Town’s:Town AAA Credit Rating

• Very strong economy, with access to a broad and diverse metropolitan statistical area (MSA), coupled with a local stabilizing institutional influence;
• Strong budgetary performance, with operating surpluses in the general fund and at the total governmental-fund level in fiscal 2018;
• Very strong budgetary flexibility, with available fund balance in fiscal 2018 at 44% of operating expenditures;
• Very strong liquidity, with total government available cash at 64.7% of total governmental-fund expenditures and 3x governmental debt service, and access to external liquidity we consider strong;
• Adequate debt-and-contingent-liability position, with 90% of debt scheduled to be retired within 10 years;

Supervisor Ed Romaine said, “The Town continues to perform at a very high level of fiscal responsibility and it clearly shows in S&P Global’s report that we are on the right course for the future. I’d like to thank Commissioner of Finance Tamara Branson, Chief of Operations Matt Miner and Councilwoman Jane Bonner for the work they do to strengthen the Town’s finances. We have saved millions of taxpayer dollars and will continue to remain on this track well into future.”

Councilwoman Jane Bonner, who serves as the Town Board Liaison to Finance said, “I commend my colleagues on the Town Board and Supervisor Romaine for their support as we continue to improve our financial stability. The real winners are the Brookhaven taxpayers who want to make sure that their hard-earned money is being spent wisely and that we are doing the best that we can to protect their interests."

Division of Public Information * Office of the Supervisor
One Independence Hill • Farmingville • NY 11738 • Phone 631-451-6595

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