Editor's Note: The following release was submitted by the City of Peekskill. If you would like to post your news to Patch, click here.
The City of Peekskill announced [Dec. 28] that it has approved a modification to its Fund Balance Policy that requires maintaining a Fund balance of between 15 to 25 percent of operating expenses. The policy, which will ensure that Peekskill maintains a solid, positive credit rating, will take effect today.
“This is a great day for economic development in Peekskill,” says Mary F. Foster, Mayor of the City of Peekskill. “By maintaining our credit worthiness, we open the door wide to economic development, more jobs and new revenue sources. A solid Fund balance also shows that Peekskill is taking proactive steps to be fiscally responsible.”
The Mayor explained that a prudent Fund balance is viewed favorably by credit agencies reduces the cost of borrowing. “This can help save Peekskill taxpayers millions of dollars.”
Peekskill officials passed the resolution to modify the city’s Fund Balance Policy during the Dec. 27 Special Common Council meeting. During the meeting, Mayor Foster indicated that she and the Peekskill Common Council would immediately contact the world’s “Big Three” credit rating agencies -‐-‐ Moody's, Standard & Poor's, and Fitch Group – to make them aware of the policy change.
Once it takes effect, the new Fund Balance Policy will bring Peekskill’s Fund balance in line with other, similar municipalities in the area and reflect best practice guidelines from the New York State Comptroller and Government Finance Officers Association.