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. Albany County’s debt refinancing and its new issuance were also rated AA with a Stable Outlook, despite the COVID-19 shutdown, ensuring a lower interest rate.

The Albany County Comptroller acted quickly at the beginning of the year to pursue refinancing opportunities and to obtain necessary legislative approval. On June 4, the County refinanced an original issuance from 2012 with $7.2 million in 2020 Series A Refunding Bonds. The Comptroller has professionalized the office with S&P’s analysis stating that Albany County has “strong management with good financial policies and practices,” a “large economy,” and “strong budgetary flexibility.”

This refinancing will save the County taxpayers approximately $1,051,102 from debt originally issued in 2012. Additionally, the County issued a minimal $4.1 million new issuance in 2020 Series B Bonds. Proceeds from the Series B Bonds will, among other projects, be used to purchase equipment for Shaker Place Rehabilitation & Nursing Center, maintain various County roads, and improve the Sheriff’s Public Safety Building. The net interest rates for the Series A and Series B bonds are 0.598% and 1.742%, respectively. These rates are lower than initial expectations.

Albany County’s economy continues to grow with several developments underway, including IBM’s $2 billion investment at SUNY Polytechnic Institute, Ayco’s newly constructed headquarters in Latham, and a potential $200 million investment in two support sites for New York State’s offshore wind project.

“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, “There was an opportunity to use the financial expertise of the current office and the County’s credit worthiness to refinance its current debt to borrow for 2020’s essential projects. My office will continue to pursue opportunities that strengthen the County’s finances, including maximizing the return on its investments and maintaining vigilant cash flow management.”

As part of this borrowing process, the Comptroller’s Office already identified an additional $10 million to transfer to debt reserve to pay down its existing debt. These additional reserves will further strengthen the County’s financial position during the COVID-19 pandemic.

Additionally, the Comptroller and her staff will continue to draw upon their investment experience to professionally manage the County’s investments. The Comptroller anticipates additional interest income totaling approximately $200,000 in fiscal 2020. Approximately $90,000 of incremental investment income has already been realized through active investment management. This represents an additional 53% of interest that would not have been achieved with prior management’s passive investment practices.

Comptroller Rizzo continues to partner with the Department of Management and Budget to address the County’s financial priorities. The departments will work together to mitigate shortfalls with smart expense control, maximizing revenue by pursuing grants, collecting accounts receivables and making responsible investment decisions.

S & P Rating Report for Albany County, NY [PDF]