Fitch Rates Nassau County, New York's $150MM GOs 'A+'; Outlook Stable.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns an 'A+' rating to Nassau County Nassau County is the name of two counties in the United States of America:
A short-term debt instrument issued by a state or municipality to borrow against the proceeds of an upcoming bond issue. and fund various county capital improvement projects. Fitch also affirms the 'A+' rating on the county's approximately $537 million in outstanding GO bonds and the underlying 'A+' rating on Nassau Health Care Corporation's (NHCC NHCC National Hispanic Cultural Center NHCC National Hispanic Corporate Council NHCC NASA Headquarters Computing Center ) approximately $263.3 million outstanding county-guaranteed bonds. The Rating Outlook is Stable. The 'A+' rating on the county's outstanding GO bonds reflects the county's strong financial management practices as well as the broad and wealthy economic base, high income levels, and moderate direct debt levels with above-average amortization rates. Management's recent willingness to increase property tax rates by 3.9% will provide additional financial stability in the upcoming fiscal year. Credit concerns center on a high fixed-cost burden, borne by all counties in the state, financial exposure related to the NHCC, and a consistent trend of over-budgeting sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. receipts, which is the county's largest revenue source. Sales tax revenue declined 0.9% in fiscal 2008 compared to fiscal 2007 and has declined 10.4% in the first quarter of fiscal 2009 compared to the same period in fiscal 2008. While the county has revised its 2009 budgeted sales tax revenue growth assumption of 0.5% to a decline of 6% for the year, Fitch believes the variance between budgeted revenue assumptions and actual collections remains a vulnerability. Nassau County's 2007 estimated population of 1.3 million residents has remained relatively unchanged since the beginning of the current decade. The county's economy benefits from its proximity to New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. as well as its own broad employment base and a diverse and wealthy tax base. The county's unemployment rate of 6.6% in April 2009 measured below that of the state (7.5%) and the nation (9.1%). Wealth levels are well above average; in 2007 per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. money income equaled 136% and 163% of the state and national levels, respectively. The county is home to 13 hospitals, including North Shore-Long Island Jewish Health System, the third largest non-profit secular health system in the country, employing over 31,000, and the Winthrop S. Nassau University Health System. The county ended fiscal 2007 with an operating surplus Operating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA) and in corporate and government accounts. It is also used in macro-economics as a proxy for total pre-tax profit income. across all major operating funds of approximately $23.8 million of which the county reserved $10 million for 2008 tax refunds Tax refund Money back from the government when too much tax has been paid or withheld from a salary. . The county's combined fund balance totaled $145 million, or 5.16% of total 2007 expenditures and transfers. The county expects to add $2.1 million to its major operating funds balance at the end of fiscal 2008, after accounting for non-recurring revenue transfers. The county's 2009 budget and 2009-2012 multi-year financial plan (MYP MYP Middle Years Programme (International Baccalaureate Curriculum) MYP Member of Youth Parliament MYP Multi-Year Procurement MYP Make Your Point ) includes a 3.9% county property tax increase, the first property tax increase in over five years. In addition to revising its budgeted sales tax growth assumption to reflect continuing declining receipts, the county aggressively addressed a projected $130 million deficit in fiscal 2009 through negotiated concessions from its multiple labor unions, new fees and charges from the installation of red-light cameras recently approved by the state and receipt of federal stimulus monies. The county has identified other cost-saving revenue measures, some of which have been implemented, including an energy tax previously approved by the county and the state which is expected to bring in revenues of approximately $18 million in the current fiscal year. Additionally, the county expects to receive $42 million in federal stimulus monies for social service and healthcare programs. Fitch notes that the county has been successful in closing the forecasted budget gaps in each MYP submitted since fiscal 2002, primarily through much improved financial management, achieving labor concessions, and a state-imposed cap on annual growth in Medicaid expenses. While Fitch believes management has been proactive in addressing the shortfall, the assumption of only a 6% decline in sales tax revenue may prove challenging and could produce another negative variance given the recent trend in sales tax performance. The county's debt burden, including the outstanding debt of the Nassau County Interim Finance Authority (NIFA NIFA Nebraska Investment Finance Authority NIFA National Intercollegiate Flying Association NIFA New International Financial Architecture (political science) NIFA North Idaho Farmers’ Association NIFA National Institute of First Assisting, Inc. ) and the county's underlying municipalities and school districts, is high at $6,362 per capita but a moderate 3.45% of market value given the county's strong property values. Market value per capita remains high at $184,239. The county's 2009-2012 capital improvement plan totals $920 million and is expected to be funded primarily through annual county debt issuance. Debt amortization equals 40% and 70% of principal retired within five and 10 years, respectively. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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