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HomeMy WebLinkAboutJ - 22 Cortlandville Annual Comment Moody's Investor ServiceU.S. PUBLIC FINANCE ISSUER COMMENT 1 September 2023 RATING Issuer Rating 1 Aa3 No Outlook CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 Town of Cortlandville, NY Annual comment on Cortlandville Issuer profile The Town of Cortlandville is located in Cortland County in central New York, approximately 30 miles south of Syracuse. Key indicators Exhibit 1 Cortlandville (Town of) NY 2018 2019 2020 2021 Aa Medians Economy Resident income ratio (%)112.4%115.6%110.8%106.0%115.0% Full Value ($000)$577,310 $582,883 $638,523 $657,838 $2,649,338 Population 8,234 8,180 8,138 8,388 22,694 Full value per capita ($)$70,113 $71,257 $78,462 $78,426 $108,666 Economic growth metric (%)N/A -3.9%-4.1%-2.8%-0.5% Financial Performance Revenue ($000)$8,070 $8,356 $8,408 $9,302 $48,404 Available fund balance ($000)$6,375 $5,925 $5,988 $7,263 $24,069 Net unrestricted cash ($000)$5,870 $5,368 $4,865 $6,415 $32,092 Available fund balance ratio (%)79.0%70.9%71.2%78.1%51.0% Liquidity ratio (%)72.7%64.2%57.9%69.0%69.0% Leverage Debt ($000)$10,996 $10,532 $9,914 $9,412 $34,496 Adjusted net pension liabilities ($000)$4,812 $5,983 $8,177 $7,046 $55,543 Adjusted net OPEB liabilities ($000)$8,374 $7,342 $8,757 $8,488 $6,316 Other long-term liabilities ($000)$0 $0 $0 $0 $1,623 Long-term liabilities ratio (%)299.6%285.5%319.3%268.2%244.8% Fixed costs Implied debt service ($000)$0 $810 $768 $710 $2,436 Pension tread water contribution ($000)$214 $198 $208 $332 $1,565 OPEB contributions ($000)$214 $252 $259 $208 $178 Implied cost of other long-term liabilities ($000)$0 $0 $0 $0 $109 Fixed-costs ratio (%)5.3%15.1%14.7%13.4%11.1% For definitions of the metrics in the table above please refer to the US Cities and Counties Methodology or see the Glossary in the Appendix below. Metrics represented as N/A indicate the data were not available at the time of publication. The medians come from our most recently published US Cities and Counties Median Report. The Economic Growth metric cited above compares the five-year CAGR of real GDP for Cortland County, New York to the five- year CAGR of real GDP for the US. Sources: US Census Bureau, Cortlandville (Town of) NY’s financial statements and Moody’s Investors Service, US Bureau of Economic Analysis MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Credit overview Economy Exhibit 2 Resident Income Median household income ($)Resident income ratio (%)Aa median resident income ratio (%) 2015 2016 2017 2018 2019 2020 2021 0 20,000 40,000 60,000 105 110 115 120 125 Source: Moody's Investors Service Financial performance Exhibit 3 Fund Balance General fund Other governmental funds Internal service funds Business-type activities Available fund balance ratio (%)Aa median available fund balance ratio (%) 2018 2019 2020 2021 0 2,000 4,000 6,000 $8,000 50 60 70 80 Source: Moody's Investors Service This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com for the most updated credit rating action information and rating history. 2 1 September 2023 Town of Cortlandville, NY: Annual comment on Cortlandville MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Leverage Exhibit 4 Total Primary Government - Long Term Liabilities Governmental Debt Business-Type Activity Debt Adjusted net pension liabilities Adjusted net other post-employment liabilities Other long-term liabilities Long-term liabilities ratio (%) Aa median long-term liabilities ratio (%) 2018 2019 2020 2021 0 10,000 $20,000 300 250 Source: Moody's Investors Service 3 1 September 2023 Town of Cortlandville, NY: Annual comment on Cortlandville MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Appendix Exhibit 5 Key Indicators Glossary Definition Typical Source* Economy Resident income ratio Median Household Income (MHI) for the city or county, adjusted for Regional Price Parity (RPP), as a % of the US MHI MHI: US Census Bureau - American Community Survey 5-Year Estimates RPP: US Bureau of Economic Analysis Full value Estimated market value of taxable property in the city or county State repositories; audited financial statements; continuing disclosures Population Population of the city or county US Census Bureau - American Community Survey 5-Year Estimates Full value per capita Full value / population Economic growth metric Five year CAGR of real GDP for Metropolitan Statistical Area or county minus the five-year CAGR of real GDP for the US Real GDP: US Bureau of Economic Analysis Financial performance Revenue Sum of revenue from total governmental funds, operating and non- operating revenue from total business-type activities, and non- operating revenue from internal services funds, excluding transfers and one-time revenue, e.g., bond proceeds or capital contributions Audited financial statements Available fund balance Sum of all fund balances that are classified as unassigned, assigned or committed in the total governmental funds, plus unrestricted current assets minus current liabilities from the city's or county's business- type activities and internal services funds Audited financial statements Net unrestricted cash Sum of unrestricted cash in governmental activities, business type activities and internal services fund, net of short-term debt Audited financial statements Available fund balance ratio Available fund balance (including net current assets from business- type activities and internal services funds) / Revenue Liquidity ratio Net unrestricted cash / Revenue Leverage Debt Outstanding long-term bonds and all other forms of long-term debt across the governmental and business-type activities, including debt of another entity for which it has provided a guarantee disclosed in its financial statements Audited financial statements; official statements Adjusted net pension liabilities (ANPL)Total primary government's pension liabilities adjusted by Moody's to standardize the discount rate used to compute the present value of accrued benefits Audited financial statements; Moody's Investors Service Adjusted net OPEB liabilities (ANOL)Total primary government's net other post-employment benefit (OPEB) liabilities adjusted by Moody's to standardize the discount rate used to compute the present value of accrued benefits Audited financial statements; Moody's Investors Service Other long-term liabilities (OLTL)Miscellaneous long-term liabilities reported under the governmental and business-type activities entries Audited financial statements Long-term liabilities ratio Debt + ANPL + ANOL + OLTL / Revenue Fixed costs Implied debt service Annual cost to amortize city or county's long-term debt over 20 years with level payments Audited financial statements; official statements; Moody's Investors Service Pension tread water contribution Pension contribution necessary to prevent reported unfunded pension liabilities from growing, year over year, in nominal dollars, if all actuarial assumptions are met Audited financial statements; Moody's Investors Service OPEB contribution City or county's actual contribution in a given period Audited financial statements Implied cost of OLTL Annual cost to amortize city or county's other long-term liabilities over 20 years with level payments Audited financial statements; Moody's Investors Service Fixed-costs ratio Implied debt service + Pension tread water + OPEB contributions + Implied cost of OLTL / Revenue *Note: If typical data source is not available then alternative sources or proxy data may be considered. For more detailed definitions of the metrics listed above please refer to the US City and Counties Methodology . Source: Moody's Investors Service 4 1 September 2023 Town of Cortlandville, NY: Annual comment on Cortlandville MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE Endnotes 1 Issuer Rating reflects the government’s ability to repay debt and debt-like obligations without consideration of any pledge, security or structural features. In some circumstances, credit characteristics are sufficient to result in a GO bond rating that is higher than the Issuer Rating. 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REPORT NUMBER 1377273 6 1 September 2023 Town of Cortlandville, NY: Annual comment on Cortlandville MOODY'S INVESTORS SERVICE U.S. PUBLIC FINANCE CLIENT SERVICES Americas 1-212-553-1653 Asia Pacific 852-3551-3077 Japan 81-3-5408-4100 EMEA 44-20-7772-5454 7 1 September 2023 Town of Cortlandville, NY: Annual comment on Cortlandville