Despite the flurry of development attracting new residents to Yonkers, narrow reserves have edged the City closer to a bond rating downgrade
Moody’s Investors Service revised its credit outlook for Yonkers’ A2-rated debt to negative from stable on Tuesday. The reasons are that Yonkers has a weak fund balance and liquidity levels. Yonkers, also faces perpetual school funding issues as state aid declines.
When faced with this dilemma, cities raise taxes and cut services. In May of 2016, Mayor Spano stated:
“The City has made a lot of progress over the last four years and our financial outlook continues to improve every day,” said Mayor Spano. “The financial burdens that threaten New York’s Big Four Cities are real, especially those placed by our dependent school districts and increasingly dependent populations. I look forward to continually working with our city and state representatives to achieve a stronger and more financially secure Yonkers.”