Middletown maintains high credit ratings with Moody’s.

Moody’s ⁢Investor⁢ Service Renews Top-Tier Credit Ratings for ⁤Middletown

In early August, Moody’s Investor Service ⁢renewed the top-tier ​credit ratings for ⁢the City of Middletown,⁣ highlighting strong economic growth ⁣and a‍ healthy ‍fund balance. This is great news for‌ the city and its residents.

The city’s short-term debt received the highest rating of MIG 1,⁤ while its long-term borrowing retained the A1 rating, which is a middle grade within the highest-ranking tier. ⁢These ratings reflect the city’s responsible financial ⁢management.

“Not only did‍ we maintain our A1 ratings, but there were also many positive comments in the report⁤ regarding ⁣the city operations, ⁤including‌ the spending that we’ve been closely‍ scrutinized over the years,” said Mayor ‌Joseph DeStefano at the latest city council meeting.

These ‌strong ⁣ratings make Middletown’s bonds more attractive to bidders and result in modest interest savings, according to City‌ Treasurer Leonora ⁣Liz.

Moody’s report attributes the city’s⁤ healthy fund ‍balance⁢ to its strong budgeting practices. Currently, Middletown has⁢ a​ fund balance of nearly $11 million, ⁢which⁤ serves ​as a rainy-day account for unspent revenue accumulated over the years.

The report ‌also highlights the city’s ongoing development in commercial, residential, and​ educational institutions. Projects ⁢such‍ as new water and ‍sewer lines along Route⁤ 17 ⁤and a future downtown trail linking three urban‌ colleges demonstrate the ‌city’s commitment to growth.

The three colleges—Orange County Community College, Touro College of Osteopathic Medicine, ⁢and Fei​ Tian College—form an education triangle that encloses ⁣downtown, fostering a vibrant learning environment.

While the report is positive overall, ⁤it also identifies ⁢areas ​for improvement that could further⁢ enhance the city’s credit⁣ ratings. These include relatively ​low resident income​ and high levels of ⁢employee benefits and ‍pension obligations.

Middletown’s poverty rate in 2021 was 17 percent, which is four points higher than the state and national averages. Additionally, ‍the city’s market value of taxable properties ⁤per capita falls‌ below the national ​average.

City Treasurer Leonora Liz has ⁣been actively seeking alternative employee ‌health insurance providers⁤ to ‍reduce costs. Employee pensions and benefits, including health insurance, account for a significant portion of the city’s obligations and can ‌fluctuate with market ⁣conditions and the number ⁤of⁤ retirees.

Despite these challenges, Middletown’s debt remains manageable, ⁣currently standing at $35 million, ‍which is less than one-third of the credit limit set under the New York Constitution.

By maintaining strong credit ratings and addressing areas for⁢ improvement, ⁤Middletown is well-positioned for continued growth and financial⁢ stability.

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