Moody’s gives Fredonia A1 bond rating
The Village of Fredonia recently received an A1 bond rating from Moody’s Investors Service for its $2.4 million New York 2019, Public Improvement Refunding. The rating did not change from the previous one.
According to Moody’s, “The A1 Issuer rating reflects the Village’s small but stable tax base, adequate financial position, manageable debt burden and somewhat elevated pension liability.”
The fiscal year 2020 budget reflects an increase of $126,0000, or 2%. Mayor Athanasia Landis and the board currently estimate a $372,000 deficit, which will reduce the estimated fund balance to 23%. This is within the village’s recently passed fund balance policy, which establishes a 15%-25% range of estimated expenditures.
Proceeds from the current issue will refund the $2.4 million 2006 serial bonds, for an estimated net present value savings of $312,000, or 11.5% of refunded principal, with no extension of maturity.