Albany County Government: Albany County Issues $23 Million Of Serial Bonds At 1.53% And Maintains AA Rating With A Stable Outlook Despit ...

Press release from the Albany County Government:

07/01/2021 11:42 am

Albany County maintained its strong credit rating and reputation in the municipal bond market resulting in an impressive savings for its taxpayers. S&P Global Ratings (S&P) reaffirmed the County’s overall long term credit rating as AA with a Stable Outlook, while in today’s environment, other municipalities have been downgraded since the COVID-19 pandemic.

Albany County Comptroller Susan Rizzo worked with the Department of Management & Budget and other County departments to conservatively project cashflow needs and borrow the necessary amount for new capital projects. On June 29, 2021, the County, leveraging its strong credit rating and exceptional reputation in the municipal debt market, issued $23 million in serial bonds. S&P’s analysis stated that Albany County has strong management with “good financial policies and practices,” a “resilient economy,” and “strong budgetary flexibility.” S&P also noted that the County’s fund balance in fiscal 2019 was 12.8% of its operating revenues, which was “an important buffer throughout this economically and financially difficult time.” The County’s economic metrics far outperformed nationwide and statewide averages throughout the pandemic.

Proceeds from the serial bonds will, among other projects, be used to maintain various County roads, complete the construction of a state-of-the-art Emergency 911 Communications Center, improve the Sheriff’s Public Safety Building and maintain various County facilities. The County received a high level of interest from potential investors, attracting ten bidders for the bonds. This resulted in an interest rate for the serial bonds of 1.53%, which was lower than initial expectations.

The local economy is recovering from the economic shock of COVID-19 with the unemployment rate as of April 1, 2021 dropping to 5% from a pandemic peak of 11.8%. Several ongoing developments are expected to bring additional jobs and investment to the region. Most notably, the Port of Albany and Port of Coeymans have both been awarded significant pieces of New York State’s offshore wind investment. These projects represent more than $350 million in capital investment and approximately 300 sustained jobs. Additional developments include a partnership between Intel and IBM for advanced semiconductor research and development, the announcement of a $750 million Wadsworth Public Health Labs project in the City of Albany and a new master plan at the Albany International Airport that is expected to drive investment in the airport area.

“As the Chief Fiscal Officer of Albany County, it is my duty to ensure responsible borrowing at the lowest rates possible,” said County Comptroller Susan Rizzo. She continued, “The County’s continued credit worthiness allowed the County to borrow at historically low rates. In 2020, the County paid down its debt by $35 million, or 11%, from $332 million to $297 million. My office will continue to borrow responsibly and pursue opportunities that strengthen the County’s finances.”

This press release was produced by the Albany County Government. The views expressed here are the author’s own.