Debt Crisis? Not in the City of Long Beach. While the Federal Government may have just gotten a credit downgrade by Standard & Poors, one of their competitors, Moody’s has just raised The City of Long Beach’s credit rating to A1 from an A3 assigned in 2008.
Both of these ratings fall along the same part of the spectrum, meaning that Moody’s – and lending institutions – look at the City of Long Beach as being of the “upper-medium grade” debtors who are subject to “low credit risk.”
This is a good thing, and though there are many taxes and fees that have residents pulling their hair out, the City does stand financially sound compared to much of the rest of the state – and is a rarity among the budget disasters that make up most of Nassau County
The City of Long Beach has a “below average debt burden,” and a sizable and stable residential tax base of $5.5 billion.
Some interesting highlights:
- The city has experienced assessed value growth of 0.4% annually over the past five years, reflecting modest development offset by successful tax appeals.
- The city is expected to benefit in the medium term from the construction of several high- rise residential buildings currently in development (what are they talking about?).
- Modest long term growth is expected given the availability of additional ocean front property.
- The tax base is not dominated by any one large taxpayer and no major tax appeals are outstanding.