Stable Outlook Assignment rather than Downgrade should be the focus for the City of Port Jervis Moody’s Investors Service report.
As expected, Moody’s Investors Service has downgraded the City of Port Jervis once again this year to Baa1 from A3 but has assigned a stable outlook.
What brought two years in a row of financial downgrading to the city? 3 prior years of poor planning cuts, depleted reserves, imaginary income forecasts, and little to no tax increases to offset city expenses. Currently, that has ended.
As you read through Moody’s December 20, 2016 report you will now find a stabilizing tax base (limited but stabilizing) and sources of liquidity outside the General Fund. There are still concerns regarding below wealth levels, growing debt burden, and multi-year deficits that narrowed reserves for the city.
At the end of 2017 the direction should change to an upgrade as we will see major city improvements in sewer, street scape, infrastructure, and recreation as well as replenishment of the fund balance and reduced expenses in energy.
Click here for the December 2016: City of Port Jervis Moody’s Report