City of Utica: Moody’s removes negative financial outlook

UTICA, N.Y. — Moody’s Investors Service (NYSE: MCO) has removed the negative outlook for Utica, representing the third financial-rating institution this year to improve the city’s financial outlook.

Fitch Ratings Inc. and Standard & Poor’s Financial Services, LLC both upgraded the city’s outlook earlier this year, Utica Mayor Robert Palmieri and Comptroller Bill Morehouse said in a news release the city issued on Tuesday.

Moody’s assigned the negative financial outlook for Utica three years ago, “amid budget deficits and financial instability,” according to the release.

Moody’s removal of the negative outlook “further solidifies” that the city’s recovery plan “is working and Utica is moving in the right direction,” Palmieri and Morehouse contended.

Specifically, the Moody’s report indicated “The City has generated two consecutive operating surpluses in fiscal 2013 and 2014, growing reserves to $1.6 million and $3.2 million respectively and the removal of the negative outlook reflects the City’s improved financial position expected to continue based on new conservative budgeting practices,” according to the release.

The Moody’s report continued, “Under new management, the City has benefitted from conservative budgeting practices guided by formal fiscal policies. The new administration started in 2012 and implemented a three year financial recovery plan. Strong budgeting practices are also evidenced by more conservative revenue projections and timely collective bargaining settlements with significant health care savings.”

Contact Reinhardt at ereinhardt@cnybj.com