Editor’s note: This press release was provided by the Village of Pelham. The Pelham Examiner publishes press releases in the form received as a service to the community.
On August 13, 2024, S&P Global Ratings affirmed the Village of Pelham’s AA+ credit rating, citing the village’s low direct debt burden, strong fiscal management policies and practices, and “sustained focus on structurally balanced finances.” AA+ is the second-highest credit rating a municipality can receive.
In its report, S&P notes that “the village has demonstrated continued progress in maintaining balanced budgets and rebuilding reserves after management took steps in fiscal 2022 to eliminate fund balance appropriations,” resulting in “material growth in available reserves from 6% of expenditures in fiscal 2021 up to about 20% of expenditures based on fiscal 2024 preliminary estimates.”
“This is exceptionally good news for us and well-earned,” said Pelham Mayor Chance Mullen. The village’s reserves had been depleted in previous years due to emergency infrastructure expenses and reduced revenues during the pandemic, and Pelham was briefly designated “susceptible to fiscal stress” by the NYS Comptroller in FY2020-21. The Village has since reduced its fiscal stress score by 72%, cutting its annual score in half each of the last three years. “Our reserves are now the strongest they’ve been in our village’s history and finally in line with New York State recommendations, we’re expanding our tax base, and we’re making long overdue investments in our facilities and core infrastructure. This turnaround is due to the hard work and leadership of our Village Administrator/Treasurer Chris Scelza, our staff, and my colleagues on the Village Board of Trustees. Our future is bright.”
S&P’s report also highlighted the Village of Pelham’s “strong wealth and income indicators” and its work to address core infrastructure and expand its tax base “by focusing on transit-oriented development around its Metro North station.” Per the report, “one of the most significant projects currently in progress is the construction of a new municipal building at no cost to the village; in return, village-owned land will be conveyed to the developer to construct a 127-unit mixed-use development. Given the village’s desirable location and ongoing development projects, we believe tax base expansion will continue and economic metrics will remain comparable with peers at the current rating level.”
The Village of Pelham is preparing to convert its existing debt to longer-term bonds and lock in lower interest rates. S&P’s decision is a positive indicator ahead of the competitive sale scheduled for August 27. S&P previously affirmed the Village’s AA+ credit rating on April 19, 2022.
The full report by S&P Global Ratings is available by clicking here.
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