MAYOR PALMIERI & COMPTROLLER MOREHOUSE ANNOUNCE MOODY’S TO REMOVE NEGATIVE FINANCIAL OUTLOOK FOR UTICA

Third Rating Institution this Year to Improve Utica’ Financial Outlook

Mayor Robert Palmieri and Comptroller Bill Morehouse today announced Moody’s has removed the negative outlook for Utica, the third financial rating institution this year to improve the City’s financial outlook.

Three years ago, amid budget deficits and financial instability, Moody’s assigned a negative financial outlook to the City. Today, Moody’s officially removed the negative outlook on Utica, while Fitch Ratings and Standard & Poor’s both upgraded the City’s outlook earlier this year.

The removal of the negative outlook from Moody’s further solidifies that the City’s recovery plan is working and Utica is moving in the right direction.

Specifically, Moody’s report stated “The City has generated two consecutive operating surpluses in fiscal 2013 and 2014, growing reserves to $1.6 million and $3.2 million respectively and the removal of the negative outlook reflects the City’s improved financial position expected to continue based on new conservative budgeting practices.”

The report went on to say that “Under new management, the City has benefited from conservative budgeting practices guided by formal fiscal policies. The new administration started in 2012 and implemented a three year financial recovery plan. Strong budgeting practices are also evidenced by more conservative revenue projections and timely collective bargaining settlements with significant health care savings.”

Mayor Palmieri stated, “Three years ago, Utica had a negative financial outlook with all three rating institutions. Today, we have a negative outlook with none of them and to have our positive financial turnaround recognized is certainly welcomed news. Over the past three years, we’ve implemented conservative budgeting practices and stayed true to our recovery plan and are now seeing the results. I thank Comptroller Morehouse, Members of the Common Council and most importantly the residents for making this turnaround possible.”

Comptroller Morehouse stated, “The positive changes we have seen in Utica over the past three years have been remarkable. With Moody’s being the third rating institution this year to highlight Utica’s financial improvement, by working together, we’ve established a consistent pattern and trend of a financial recovery. I commend Mayor Palmieri for his leadership as this is another victory for Utica.”

Common Council President Frank Meola stated, “The Common Council has worked closely with Mayor Palmieri and Comptroller Morehouse and this announcement is further evidence of our partnership and teamwork as we continue to improve Utica’s finances.”