WPCNR MR. & MRS. & MS. WHITE PLAINS VOICE. MARCH 29, 2006: John Carlson, former candidate for Common Council independently attempted to get Moody's Investors Service to comment on their lifting of the White Plains "negative outlook" last week. This was what he found out:
Ladies and Gents -
Moody's did not answer my questions that I raised in regard to their lifting Negative Outlook on the City's rating in respect to:
- the City's planned asset sales; and
- the on-going negative impact that Tax Certs have had on the commercial tax base in White Plains.
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It looks like Moody's thinks the homeowners are City's the "deep pockets". At least, this is what one must conclude after reading their attached report. As sales tax revenues fluctuate or don't materialize, it will be the residential-homeowners who are taxed to repay the City's borrowed money.
Indeed, while the City and the School System continue to spend, borrow and sell assets, the wealthy investors to whom Moody's writes can count on us, the White Plains homeowners! -- but for how much longer?
Note that Moody's refers to their report as "public information".
Sincerely,
John Carlson
Editor's Note: Mr. Carlson asked the Moody's analyst, Lisa Cole the follwing two questions:
Question - If the City is selling assets to cover operating expenses, how can Moody's justify removing the Negative Outlook? Moreover, Moody's latest report on the City said that "healthy financial operations are anticipated" -- doesn't this effectively say that the City still has financial problems?
Background - The overall vitality and health of the City of White Plains is, in large part, dependent on the strength of its schools.
Question - With both the City and the White Plains School System suffering from the declining commercial tax base, wouldn't maintaining Negative Outlook be appropriate for each entity's rating? -- or, at least, for the City's?
Ms. Cole declined to answer the questions, referring Mr. Carlson to the Moody's Report described as "public information."
To view Moody's Report on the City of White Plains, go to www.moodys.com, register as instructed with an e-mail address and you will be sent a password. Return to the site and log in and search for City of White Plains, to view the report. There is no charge.
