Moody's Investors Service said it has upgraded the town of Ithaca, N.Y., to Aa1 and assigned the Aa1 rating to $885,000 general obligation public improvement refunding (serial) bonds, 2014 Series A and $3.0 million public improvement (serial) bonds, 2014 Series B.
The upgrade to Aa1 affects $8.6 million of outstanding rated parity debt. The bonds are secured by the town's general obligation pledge as limited by the Property Tax Cap - Legislation (Chapter 97 (Part A) of the Laws of the State of New York, 2011).
Proceeds of the Series A bonds will refund the town's Series 2004 bonds for an expected net present value savings of $87,832, or 9.76% of refunded principal. Proceeds of the Series B bonds will finance water and road improvement projects.
The upgrade to Aa1 reflects the resilience of the town's tax base given the institutional presence of Ithaca College and Cornell University, and the town's track record of operating fund balance due to its strong financial management and sound budgeting practices.
The Aa1 rating reflects the town's ample reserve levels, moderately-sized tax base with above-average socioeconomic profile, significant institutional presence, and modest debt profile.
