FOR IMMEDIATE RELEASE
April 6, 2021
Statement from Mayor Noble on Debt
On Tuesday, April 5 at the Common Council
Caucus meeting, Noah Nadelson, CEO of Munistat Services, lnc gave a
presentation on the City of Kingston's debt profile. Munistat Services provides
fiscal advisory services to the City of Kingston for debt issuance matters. The
presentation provided an overview of the City's debt, where our debt levels
stand in relation to market metrics, and how Kingston’s debt compares to other
municipalities in New York State.
In the presentation, Mr. Nadelson
explained to the Council that the City of Kingston is in good debt standing
with a strong debt profile, which is the most positive designation
(strong/adequate/weak). Debt only makes up approximately 10% of the City's
strong bond rating, and debt service makes up less than 10% of the City's
General Fund Operating Budget. When compared to other New York State
municipalities of similar size, the City of Kingston rates favorably in debt
metrics such as total debt, debt per capita, and debt as a percentage of
taxable assessed value.
As Mr. Nadelson explained, all
municipalities have debt; it is not a bad thing the way me might consider
personal debt. Bonding allows the City to invest in vital infrastructure when
needed and pay for it over time. It means that taxes do not spike when the City
embarks on a major project or when an emergency financial situation arises. In
fact, under Mayor Noble, the City of Kingston’s taxes have not gone up in six
years as we continue to have a low annual fiscal stress score as measured by
the NYS Comptroller and good debt standing.
City of Kingston Comptroller John Tuey
says, “The presentation provided an overview of the City’s debt structure in a
manner that promotes a better understanding of various aspects of our debt
profile. It is also a resource that the City’s leadership can take into
consideration when analyzing future financial decisions.”
I am proud of the City of Kingston’s
ongoing good financial standing, despite the pandemic and in the midst of
multiple major infrastructure upgrades and projects. Our City is strong and we
are in good fiscal shape to move forward on important community initiatives
including housing, sustainability and resilience, and public safety.
The full debt presentation can be found here,
or to watch the Caucus meeting, click here.