Westchester County, a prosperous suburban region north of New York City, is preparing to issue approximately $189 million in general obligation bonds to fund various capital improvement projects. Fitch Ratings has assigned the bonds a coveted AAA rating, signifying the highest creditworthiness. The bond sale, anticipated in February, will support the county’s ambitious capital plan.
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Funding Key Infrastructure and Development Initiatives
The bond proceeds will contribute to a broader $2.5 billion budget approved by county legislators for the 2025 fiscal year. This budget allocates a significant $373 million towards enhancements in crucial sectors such as housing, environmental facilities, and infrastructure, encompassing roads and bridges. This investment underscores the county’s commitment to maintaining and enhancing its quality of life and infrastructure.
Economic Growth Fuels Strong Credit Rating
Fitch Ratings, in a December report authored by Margot Johnston and other analysts, highlighted the positive impact of recent growth in the biotech, healthcare, and retail sectors on Westchester County’s economic outlook. This diversified economic base provides stability and contributes to the county’s strong financial position.
Several major developments are underway, further bolstering the county’s economic momentum. Morgan Stanley is currently renovating its corporate campus in Harrison, a project projected to generate approximately 2,700 permanent jobs. Additionally, the NRP Group is constructing a 200-unit luxury apartment complex in Harrison, while Hastings-on-Hudson is welcoming a new $121 million film and television production studio spanning over 245,000 square feet. These investments signal confidence in the county’s long-term economic prospects.
Residential and Commercial Growth Drives Tax Base Expansion
Fitch analysts observed a notable increase in residential and commercial development across the county, particularly in Harrison, Ossining, Sleepy Hollow, and Hastings-on-Hudson. This activity is driving growth in the county’s tax base, further strengthening its financial foundation.
“The tax base is experiencing an uptick in residential and commercial development throughout the county particularly in Harrison, Ossining, Sleepy Hollow and Hastings-on-Hudson,” the Fitch analysts wrote. “County officials expect full property values to see continued growth reflecting residential housing price appreciation and ongoing expansion in the local economy.” This positive trend is expected to continue, fueled by rising residential property values and sustained economic expansion.
Bond Issuance Details
Westchester County plans to issue the debt in three series, primarily comprised of tax-exempt general obligation bonds. Approximately $29.9 million of the bonds are anticipated to be taxable. The competitive sale of the bonds is scheduled for the week of February 3rd. This structured approach to bond issuance provides flexibility and optimizes the county’s financial strategy.
Conclusion
The issuance of these AAA-rated bonds positions Westchester County to make significant investments in its infrastructure and future. The county’s robust economic growth, driven by thriving industries and strategic development projects, provides a solid foundation for these investments. This proactive approach to capital improvement reinforces Westchester County’s commitment to maintaining its high quality of life and supporting continued economic prosperity.
