YONKERS, N.Y. – Fresh on the heels of a financial outlook upgrade, Yonkers has refunded close to $50 million in municipal and school bonds.
As a result, taxpayers will save up to $4 million over the life of the bonds and nearly $1 million for the current fiscal year, Mayor Mike Spano said Thursday.
“Every dollar saved counts as our city deals with its fiscal challenges,” he said in a statement, noting the city’s bond savings also reflect the current market’s lower interest rates.
“It is apparent that buyers recognized our strengths and recent upgrade of our financial outlook. I believe these savings garnered over the coming years is the beginning of putting our city back on the path of fiscal stability.”
Last week, Standard & Poor’s Rating Services and Moody’s Investors Service released its bond ratings for Yonkers, both of which determined the city’s financial outlook to be stable.
The agencies said there was reason for optimism as Yonkers has a high but manageable debt profile and is expected to benefit from planned economic development over the long term. They also noted the city’s planned revaluation of its tax base and its initiative to address outstanding union contracts as reasons for the improved outlook.
The rating also reflects fiscal challenges for the city, all of which are being addressed, officials said.
These include the city’s structural imbalances that will require additional deficit financing, a collective $430 million budget gap projected from 2014-2016 and unsettled collective bargaining unit contracts, the mayor's office said.