Good News - Utica Bond Rating Downgraded
Posted in the Utica Forum
#1 Mar 4, 2013
Maybe this will help bring the much needed control board to the area....
Moody's Investors have downgraded the City of Utica's bond rating.
The rating will affect the roughly $47 million in outstanding rated debt of the city, and Moody's states the outlook for the city "remains negative."
#2 Mar 4, 2013
Doesn't Moody's have faith in the sewage boat casino?
Don't they believe the harbor turd baseball stadium. Our leaders have a vision og gambling and baseball and higher taxesm
#3 Mar 4, 2013
IT IS ONE LEVEL ABOVE JUNK.
#4 Mar 4, 2013
UTICA — Moody’s Investors Service Inc. has downgraded the city’s bond rating yet again.
The ratings agency cited the city’s severely weakened financial position as the reason for downgrading the city’s bond rating from Baa1 to Baa2 with a negative outlook.
Last year, Moody’s downgraded the city’s bond rating twice and Fitch Ratings lowered the city two notches from A- to BBB, and assigned it a stable outlook.
The city has taken the proper steps in its most recent budget to improve its financial situation, and the downgrade could have been worse, Comptroller Michael Cerminaro said.
“They’re not looking at what we’ve done this budget year,” he said.“They’re using old information. All the things the ratings agencies have asked the city to do, the city has done.”
The rating, which was released Feb. 22, will affect $47 million in outstanding debt.
In a news release, Moody’s cites the city’s severely weakened financial position, rapidly draining cash, thin reserves and a reliance on capital markets to fund operations.
“The rating also incorporates a heavy debt burden, a weak tax base that includes significant amounts of vacant or tax-exempt properties, and high fixed costs,” the news release stated.
In a separate report Moody’s points out,“The General Fund’s net cash position is negative and it is not immediately clear how this will be addressed.”
The report shows that the city has used $4.4 million of its general fund balance from 2009 to 2012, leaving approximately $397,384.
Utica also has used substantial amounts of its water, sewer and capital projects funds.
The problems are due to past administrations’ use of fund balances and trusts and the city has cut jobs and put together a realistic budget, said Mayor Robert Palmieri.
“The report shows that this administration has moved toward stabilization,” he said.
Moody’s does note that Utica has a moderately sized and stable tax base but it relies on capital markets to fund its operations and has a minimal financial cushion.
#5 Mar 4, 2013
Every time the City gets down graded promotions and raises go out to UPD and UFD.
#6 Mar 4, 2013
People don't understand that a control board can come in cut services and raise taxes 42% and you don't have a say that's the final.
#7 Mar 4, 2013
Since the majority of the 33% that actually pay these taxes are Senior Citizens living on fixed income, what is the Control Board going to do when these Seniors don't have the money to pay a 42% increase in taxes?
This "city" will end up exactly like Detroit.
#8 Mar 4, 2013
Probably one of the first thing they will do is break/ renegotiate union contracts...
#9 Mar 5, 2013
The control board will do exactly the same as the local politicians, they will RAISE taxes and not care who has to pay more or if they have the ability to pay more.
The Senior Citizens you mention are the same idiots that VOTE for the same failed politicians over and over.
The Senior citizens complain and then they go vote for the same old good boys.
#10 Mar 5, 2013
Vote for change in the next election. Dave Gordon for Utica Mayor!
#14 Mar 5, 2013
Moody's rating is still "Prime". So Utica is not quite junk yet. Two more notches though.
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