Fiscal Stress Scores Evaluate Financial Stability & Management; Moody’s “AA” Credit Ratings Issued On New Clarkstown Debt
ANALYSIS
Orangetown, Stony Point, Clarkstown and Haverstraw are not fiscally stressed, according to The New York State Comptroller’s Office’s annual report released last week. In contrast, Ramapo was designated as being moderately fiscally stressed due to diminished fund balances and inadequate reserves.
Among the villages, the Village of New Hempstead was designated as being under significant fiscal stress, having the worst score in the state.
Spring Valley failed to file paperwork to enable the Comptroller to evaluate its finances.
The factors the Comptroller considers include year-end fund balances, operating deficits, liquidity, debt service, fixed costs, salaries, benefits, and pension costs. Having “No Designation” does not imply that the municipality is free of all fiscal stress conditions.
The Comptroller examines and reports on the financial affairs and condition of local governments on a sliding scale, the lower the score, the better.
Clarkstown’s higher score is a reflection of issues relating to diminished fund balances.
For Haverstraw, Stony Point, and Orangetown, the score was derived from operating deficits over time.
Ramapo scored in all of these categories, as well as in the maintenance of inadequate cash balances.
The Comptroller also evaluates Environmental Stress, which addresses changes in population, demographics, home values, incomes, unemployment rates, reliance on state and federal aid, and households on public assistance. All five towns were rated as “not stressed”. The Village of New Square was rated as being moderate environmental stress.
Credit Ratings
Credit Ratings are issued as opinions by third-parties and look at many of the same factors as the Comptroller’s Office.
Standard & Poor’s Global Ratings recently assigned its ‘AA’ long-term rating to the Town of Clarkstown $8.056 million series 2026B public improvement general obligation (GO) bonds. It also affirmed its ‘AA’ long-term rating on the town’s GO outstanding debt.
According to S&P Global, most rated municipalities in New York have ratings between A+ and AA+, primarily based on the debt obligations secured by tax revenues, but not all municipal governments are rated.
After issuance of new 2026 bonds, Clarkstown will have about $158 million in outstanding debt, according to S&P.
The rating reflects S&P’s view of the following:
- Clarkstown’s incomes high compared with those of state and national peers,
- The tax base continues to expand through ongoing residential and commercial development, which supports the town’s revenue-generating ability since the primary revenue source is property taxes
- Local incomes are substantially above county and national averages, which provides economic uplift.
- Clarkstown maintains formal debt and investment management policies consistent with state guidelines. The town’s formal fund balance policy calls for maintaining total fund balance reserve at two months’ operating expenditures; though currently, Clarkstown is not in compliance with its policy.
- Though Clarkstown’s debt is manageable, S&P views its large pension and OPEB obligations as a credit weakness. The OPEB liability equals $238.4 million as of fiscal 2025, which Clarkstown meets on a pay-as-it-goes basis.
Supervisor George Hoehmann said in a press release, “Clarkstown’s finances have never been in better shape and I’m immensely proud of the progress that we’ve made. ”
Locally, the S&P rated municipal governments are Airmont (AA), Clarkstown (AA), Nyack (AA-), Piermont (AA+), Ramapo (A), Upper Nyack (AA+) and Rockland County (AA+).
Moody’s and Fitch also rate municipal governments including Rockland County (Moody’s Aaa, Fitch AAA), Orangetown (Moody’s Aa2) and Ramapo (Moody’s A3).
Orangetown issued $14,594,000 in 20-year Public Improvement Serial Bonds in July, and authorized $2,129,000 in serial bonds for the Orangetown Sewer District in May 2026.
Ramapo was downgraded from A+ to A rating by S&P Global Ratings. S&P assigned its ‘A’ rating to Ramapo’s $18.1 million series 2026 public improvement bonds with a negative outlook.
Featured Image: Office Of State Comptroller
