Suffolk's Credit Rating Upgrade: A Boon for Taxpayers

Suffolk County, New York, has received a credit rating increase from Fitch, one of the three major credit rating agencies. This development signifies an improvement in the county's financial health and is expected to yield significant benefits for taxpayers in the long run.

Unlocking Savings and Strengthening Financial Resilience

Improved Credit Rating: A Pathway to Lower Borrowing Costs

Suffolk County's credit rating has been upgraded from A- to A, a testament to the county's enhanced financial management and conservative revenue forecasting. This higher credit rating translates to lower interest rates when the county borrows funds for infrastructure projects, vehicle acquisitions, or addressing civil liabilities. As a result, taxpayers can expect to save millions of dollars over the long term, as the county's newfound ability to sell bonds at a decreased interest rate frees up resources for other essential services and priorities.

Strengthening Fiscal Resilience: Reserves and Budgetary Practices

Fitch, the credit rating agency, has highlighted Suffolk County's commitment to maintaining a healthy level of available cash reserves, which currently stand at around 15% of total spending. This reserve cushion serves as a safeguard, enabling the county to better absorb potential economic downturns. Additionally, the county has upgraded its budgetary practices, further bolstering its financial resilience and positioning it to weather future challenges more effectively.

Pandemic Response and Federal Aid: Navigating Unprecedented Times

The county's finances have seen notable improvements in recent years, partly due to higher-than-anticipated revenue during the pandemic years and the infusion of approximately $500 million in federal pandemic-related aid. This influx of resources has helped the county navigate the unprecedented challenges posed by the COVID-19 crisis, while also contributing to the overall strengthening of its financial standing.

Responsible Budgeting and Prudent Spending

Suffolk County Executive Edward P. Romaine has emphasized the importance of budgeting responsibly and "rightsizing" government to deliver the services expected by the county's residents. The proposed $4 billion annual budget for the upcoming fiscal year reflects this commitment, with a modest 3.7% increase in spending while minimizing the use of the county's reserves. This approach demonstrates the county's dedication to fiscal prudence and long-term financial health.

Balancing Taxpayer Interests and Service Delivery

The credit rating upgrade comes with a trade-off for taxpayers, as the proposed budget would result in a property tax increase of approximately $49 per year for those in the five western towns and $4.60 for those in the five eastern towns. However, Romaine has stated that this increase is necessary to maintain the county's financial stability and continue providing the services expected by residents. The delicate balance between taxpayer interests and the need to fund essential services remains a key consideration in the county's financial decision-making.

Continuous Improvement and Future Upgrades

Suffolk County's credit rating increase is seen as a stepping stone towards further improvements in the future. Romaine has expressed his commitment to continued responsible budgeting and "rightsizing" of government, which he believes will set the stage for future upgrades and solidify the county's financial standing. This ongoing pursuit of excellence in financial management is a testament to the county's dedication to serving its residents effectively and efficiently.