Credit Woes? Not for Schenectady

Schenectady Mayor Brian Stratton can add this one to his resume again: the credit rating for the city of Schenectady was upgraded Monday by two separate agencies.

Schenectady now has a credit rating of "Baa1: stable outlook" by Moody's Investors, and an "A-, stable outlook" by Standard & Poor's Rating Agency.

This is the sixth consecutive time since 2004 that Moody's has improved the city's credit outlook or elevated its credit rating, and the third consecutive upgrade for the city by Moody's, according to the mayor's office.

"Schenectady's credit rating has not been this strong for nearly nine years," said Mayor Stratton in a written statement released Monday. "Our vastly improved fiscal condition reflects the hard work between our administration and the City Council, and in cooperation with our city employees, our government partners, the private sectors and every citizen of Schenectady."

Standard & Poor's cited the city's new revenues and a cumulative unreserved fund balance of $10.4 million for its rating of A-minus: "The city's financial position has demonstrated a significant positive change over the past three fiscal years (2005 - 2007) after several years of poor financial management that led to negative ending fund balances in all funds," says S & P's via Strattons press release.

"As a result of several key factors, including a new mayor and administrative staff, increased state aid revenues, additional revenues (primarily through tax lien sales and the implementation of a residential waste disposal fee), and expenditure cuts, fiscal stability has begun to be restored."

Last week, an audit by Cusack and Company for the year of 2007 showed a surplus in each of the  city's four fund divisions for the third consecutive year.

Four years ago, Schenectady had a projected deficit of $10.2 million and the lowest junk bond credity rating by Moody's of any municipality in the state.

To read the individual rating reports, visit: www.standardandpoors.com and www.moodys.com