City's Move Sends Signal to Credit Agencies that Peekskill is in Solid Fiscal Shape
The City of Peekskill announced it has approved a modification to its Fund Balance Policy that requires maintaining a Fund balance of between 15 to 25 percent of operating expenses. The policy, which will ensure that Peekskill maintains a solid, positive credit rating, took effect on January 2, 2013...
(L-R) Bill Mooney, president, The Westchester County Association; Ernie Davis, mayor, City of Mt. Vernon; and Mary F. Foster, mayor, City of Peekskill.
“This is a great day for economic development in Peekskill,” says Mary F. Foster, Mayor of the City of Peekskill. “By maintaining our credit worthiness, we open the door wide to economic development, more jobs and new revenue sources. A solid Fund balance also shows that Peekskill is taking proactive steps to be fiscally responsible.”
The Mayor explained that a prudent Fund balance is viewed favorably by credit agencies reduces the cost of borrowing. “This can help save Peekskill taxpayers millions of dollars.”
Peekskill officials passed the resolution to modify the City’s Fund Balance Policy during the December 27 Special Common Council meeting. During the meeting, Mayor Foster indicated that she and the Peekskill Common Council would immediately contact the world’s “Big Three” credit rating agencies -- Moody's, Standard & Poor's, and Fitch Group – to make them aware of the policy change.
The new Fund Balance Policy brings Peekskill’s Fund balance in line with other, similar municipalities in the area and reflects best practice guidelines from the New York State Comptroller and Government Finance Officers Association.
In December, the Westchester County Association successfully pushed County leaders to protect Westchester's Fund balance after the Board of Legislators threatened to raid the reserve fund, which would have placed the county in grave danger of being downgraded.