Moody's drops Schenectady's bond rating
By Lauren Stanforth
Updated 2:45 p.m., Wednesday, September 26, 2012


SCHENECTADY — Moody's Investors Service has downgraded the city's bond rating, issuing a report Wednesday that says the city carries too much debt and has a "declining financial position which is expected to deteriorate further in fiscal 2012."

The Moody's report only re-enforces what is already known about budgetary problems in Schenectady: that the city struggles to come up with revenue in the face of declining property values and rising state pension costs. Last year, the city closed its books $5 million in debt.

The report released Wednesday says the city's bonds have been downgraded from A1 to A3 because Schenectady carries $34.6 million in debt, which is considered above average. The city's financial situation will deteriorate further this year, Moody's says, because of fewer people are paying their property taxes and employee benefits are rising.

Schenectady lost millions in revenue last year once it could no longer sell its tax liens to a Florida-based collections company. About 12 percent of its taxes are considered uncollectible – up 10 percent over the last five years.

Schenectady Mayor Gary McCarthy, who is expected to present his 2013 budget on Sunday, said the city is simply under more pressure to collect back taxes. The city recently fired its local collection agency, with McCarthy saying Schenectady could bring in the money using city employees without having to pay an agency's collection fees. The city also recently brought in more revenue by threatening to foreclose on properties with delinquent taxes.

McCarthy said his proposed budget Sunday will not be going over the 2-percent property tax cap.

Moody's report lists only one positive for Schenectady – its proximity to "employee opportunities in neighboring Albany."

McCarthy shrugged off Moody's opinion about the city's debt, saying Schenectady must continue to borrow money to do things like pave roads.

"(Moody's) is looking at global issues," he said. "I have to deliver services in the city."

Read more: http://www.timesunion.com/loca.....25.php#ixzz27baThfNZ

"McCarthy shrugged off Moody's opinion about the city's debt, "

HUH!! I thought that one of the reasons for accepting the sales tax deal was to put a favorable face on the cities finances for Moodys.

What ?



Let's see DV explain this one !!!


So, DV, explain HOW the dems you cheer for, the dems in the city, and county, and plex, who are on this wild uncontrolled spending spree with the taxpayers' money spending it on downtown, let's see YOU explain HOW downtown is helping the city!!!!!!!!!!!

Oh yeah, he will NOT address the issues when there is EVIDENCE   And of course, I being highly intelligent, have proven OVER AND OVER AND OVER AND OVER again that the EVIDENCE shows that the spending of money on downtown is NOT helping  the city---NOT AT ALL, and DV CANNOT, ABSOLUTELY CANNOT provide ANY EVIDENCE WHATSOEVER to the contrary


Here goes the chicken, into hiding, far too embarassed to face the TRUTH about his dem socialist buddes.  

Oh, he's probaby at home in bed with a tummy ache from the RL dinner last night

Quoted Text

Moody's report lists only one positive for Schenectady – its proximity to "employee opportunities in neighboring Albany."

Read more: http://www.timesunion.com/loca.....25.php#ixzz27c2aZnGu

Well the City actually has way more than $35 million in debt.  The actual amount is over $100 to $150 million when you count the unreported Employee Retirement obligations.  Regardless, the change in rating for the $35,000,000 portion that Moodys is referencing (mostly the $20,000,000 Taj Garage) will cost us about $500,000 more than anticipated.  This debt wasnt used for paving roads.  I love how McCarthy spins.

This is what Moodys said below.....what could make the rating improve?  An increase in finacial flexibility and reserve position.  NOPE  Decrease in city's debt burden. NOPE Not going to happen.  

What could make the rating worse?  Fiscal 2012 results are lower than current expectations.  YUP Failure to enact a plan to stabilize operations NOPE and increase property tax collections  NOPE

What McCarthy doesnt know is that Moodys has people/analysts (some like Jason Cuthbert) watching the council meeting, doing research on the web, watching the politics, the spin.  They saw the stupid Sales Tax deal.  They know they sealed the citys fate.

I dont know what McCarthy wants to be when he grows up but he better start to reassess.  Stratton is lucky to be out.  McCarthy will be the face of this implosion as it should be considering his position in law enforcement and the council all these years.  

The next downgrade will occur soon, probably shortly after we see how bad there 2012 projections were.  Partys over.  

WHAT COULD MAKE THE RATING CHANGE-UP (REMOVAL OF NEGATIVE OUTLOOK):

* Significant increase in the city's financial flexibility and reserve position
* Decrease in the city's debt burden

WHAT COULD MAKE THE RATING CHANGE-DOWN

* Fiscal 2012 results are lower than current expectations.
* Failure to enact a plan to stabilize operations and increase property tax collections

Quoted from 3303

Moody's drops Schenectady's bond rating

Quoted from DemocraticVoiceOfReason

.   The RENAISSANCE continues!

Quoted from Glryinthhighest

VIVA LA RENAISSANCE!

Quoted from Glryinthhighest

The Renaissance continues to gather steam! Hip-hip HOORAH!

Quoted from DemocraticVoiceOfReason

Unfortunately, the nayboobs  like to lie, distort

Quoted from Glryinthhighest

… and furthermore the City is undergoing a renaissance that will silence the most vociferous critics once upcoming major announcements are made.  

Quoted from 3303

"McCarthy shrugged off Moody's opinion about the city's debt" HUH!! I thought that one of the reasons for accepting the sales tax deal was to put a favorable face on the cities finances for Moody's.

What a shocker! Moody's should lower it to junk bond status. The County sales tax deal screwed the City. It didn't help the County either since the DEM fiscal politards are now plotting to blast Cuomo's 2% tax crap.
McCheese is now finished. The State Fiscal Control Board must take over from these total DEM incompetents.
McCheese has another "plan"-lol.

Pave roads: Watt St was just done. In my unprofessional opinion, it's going to be bust after this winter. The seams look poorly done, sure to be split by freezing water, then torn up by plows. I hope this paving company has some sort of warranty. Moody's report, no mention of the great
work Metroplex is doing for us as a positive? Employee opportunities are in Albany?? F it, let the mayor keep borrowing till we go bankrupt or get taken over.  Viva la Renaissance to the tune of that song.

end of days

cheerleaders and apologists such as visitor and dv have heads stuck up you-know-where

Quoted from Dirt2

Pave roads: Watt St was just done. In my unprofessional opinion, it's going to be bust after this winter. The seams look poorly done, sure to be split by freezing water, then torn up by plows. I hope this paving company has some sort of warranty. Moody's report, no mention of the great
work Metroplex is doing for us as a positive? Employee opportunities are in Albany?? F it, let the mayor keep borrowing till we go bankrupt or get taken over.  Viva la Renaissance to the tune of that song.

No your right.  
It doesn't take a professional to know that these pave jobs are being done poorly.   The roads being done invisible not so revolutionary method will also blow up quickly.  There is a reason that no body else is doing it.  Just more kicking the can down the road.

Quoted Text

McCarthy shrugged off Moody's opinion about the city's debt, saying Schenectady must continue to borrow money to do things like pave roads.

"(Moody's) is looking at global issues," he said. "I have to deliver services in the city."

McC, you would NOT have to borrow money, or as much money, if you made Proctors and the rest of the downtown properties pay taxes!!!!!   If you made them pay taxes, then the tax BILLS for the homeowners would be lower

And since when are pleasure drives far outside the city -- department heads and cops driving to and from work -- a service you "have to deliver" ???

And all McC is going to do is blame it on the pension costs stuff.  He will not acknowledge that the city is spending money on projects that are NOT needed, not at taxpayer expense anyway.  

These projects downtown have done ABSOLUTELY NOTHING WHATSOEVER to help the city, and I DEFY ANYONE to provide one thing to show how downtown has benefitted the homeowner taxpayers in the city.  

how can moodys drop the rating? QE3 is here to float it.......

The problem is not enough sheeple paying insane DEM taxes. Not that the DEM morons keep increasing taxes
and fees. But don't fret. Accord to Mayor Alfred E Newman there is a plus Schenectady is close to Albany State jobs. The entire corrupt DEM house has collapsed. County DEM morons meeting tonight to blast through the Cuomo crap.

    There are no reserves, millions in deficit, minimum payments on McCheese's Garage Mahal. The only solution is
bankruptcy. The DEMS are fiscal incompetents who have been borrowing from Peter to pay Paul for 37 years. Marion
Porterhouse is finished in November. She won't win in Ham Hill.

always someone else fault, so says government.

ever think the taxes were too high to pay?????????????

They dont realize that people simplky cant afford the taxes and cant come up with them

Quoted from GrahamBonnet

always someone else fault, so says government.

ever think the taxes were too high to pay?????????????

They dont realize that people simplky cant afford the taxes and cant come up with them

Right.  Its like having a lemonade stand and charging $5 a glass and then saying you dont understand why you are broke.  If just more people bought my $5 lemonade then we would make money.  

McCarthy is in way over his head.  Very skilled in his communication though.  The sheeple are still on board.