Boasting conservative fiscal policies among his administration, Town of Hempstead Supervisor Rich Guardino stated this week that his municipality still has the highest Wall Street credit rating of any town or county on Long Island. As a result, the Town's strong management oversight led to historic low borrowing costs, according to Guardino.

"These prudent practices have resulted in interest costs below two percent on some of the Town's most recent borrowing," he said. "These low interest rates have resulted in $110,000 in savings to our Town of Hempstead taxpayers. I am proud that my administration has instituted tough management initiatives and strict fiscal oversight."

Moody's Investors Service, a respected Wall Street rating agency, gave the Town the high rating during a recent borrowing. The Town of Hempstead held a sale of bond anticipation notes (BANs), often called "short-term" borrowing, on June 28. The Town financed more than $34 million with average interest costs on the borrowing at two percent. However, $20 million of the total $34 million received an interest rate of 1.94 percent.

According to Moody's, the interest costs associated with this latest financing are the lowest of all town BAN finances going back to 1984, the earliest year BAN records were on file.

"We have been informed by the banks handling this financing that the Town of Hempstead has received among the lowest interest costs of any town or county in the state this year," Guardino said. "This rate compares favorably to other municipalities and this is the lowest interest cost the town has realized in recent memory."

Moody's observed "...conservative budgeting practices...and aggressive expenditure control have contributed to a financial track record that is one of the strongest of any town on Long Island." Agency representatives said in a written statement that they "expect that the town's overall financial position will remain strong...the stable outlook is based upon...sound financial planning and performance."

A comparison to average statewide interest costs for municipal borrowings revealed that the Town of Hempstead will save in excess of $110,000 in interest costs on the current borrowing. Guardino said the Town of Hempstead plans to continue its strict fiscal controls, ensuring the best bond ratings and reduced borrowing costs.

Guardino said the Town's financial track record gives it access to financial markets under circumstances favorable to residents. Only when it is on a sound financial footing can a government reach out and be of maximum assistance to its residents, he said. "It is important to let residents know that some local governments are getting the job done and protecting their tax dollars."