Standard & Poor’s has given the city of Yonkers its highest bond rating in more than three decades, and the city’s mayor credited a bipartisan City Council effort as instrumental in the improved fiscal outlook.
Mayor Mike Spano announced that S&P upgraded to A+ its rating of   Yonkers”™ general obligation bonds, up three levels from its previous BBB+ rating.  Citing the city”™s strong financial management, good fiscal policies and an improving economy during the past three years, the ratings services agency said the city has a stable fiscal outlook.
Spano called the higher rating “a sign that Yonkers is moving in the right direction and our economy is gaining steam” and a “reaffirmation” of his sound fiscal policies through two years in office.
“In Yonkers we”™ve seen what can happen when Democrats and Republicans put politics aside to do what”™s right for the people,” Spano said in a press release. “The City Council, working across the aisle, has been instrumental in our success to stabilize Yonkers”™ fiscal outlook and grow the economy.”
The city”™s outside auditor, Nicholas DeSantis, said the city”™s A+ bond rating from S&P is the highest since at least 1981 and could be the best ever for Yonkers.
St&P in the ratings report said Yonkers”™ financial flexibility has improved considerably in the past few years after the city was assessed as having a negative fiscal outlook by Moody”™s as recently as 2011. S&P also credited Spano with reaching a new contract with the Yonkers Patrolmen”™s Benevolent Association that eliminates new recruit bonuses, reforms sick leave and helps to eliminate some of the uncertainty in the city’s financial plan.
S&P also noted several financial challenges facing Yonkers. They include the rising costs of pensions and employee fringe benefits; a 2 percent constitutional tax limit which, if breached, would hamper the city”™s ability to collect property tax revenues; increasing strains placed on the city as one of only four cities in New York with a dependent school district; a tax base that is 37 percent exempt, and ongoing tax certiorari settlements.
Spano said he will continue to urge Gov. Andrew Cuomo and the state Legislature to provide cities like Yonkers with the tools to solve their long-term financial challenges. He will testify this before the Joint Legislative Budget Committee in Albany.
“The city has made a lot of progress over the last two years and our financial outlook continues to improve every day, but we”™re not out of the woods yet,” Spano said.
