Moody's slashes Yonkers' credit rating on budget woes
Yonkers' credit rating was downgraded today due to apparent structural imbalances in the city's budget, projected deficits and unsettled contract agreements with unions, a move which could impact taxpayers in the long run.
David Simpson, a spokesperson for Yonkers Mayor Phil Amicone, blamed the national fiscal crisis for the city's economic woes, all while trying to downplay the effect of the downgrade on the average homeowner.
"The immediate impact will be very little, if anything," he says. "What we're talking about is the long-term ability to fund capital projects."
As a result of the decision by credit rating agency Moody's to slash Yonkers' debt rating by two notches, just three steps away from junk status, the city will have to pay more to bond its development projects.
City Council President Chuck Lesnick says it should be a wake-up call for City Hall.
"I'm worried the confidence in the city will diminish," he says. "I'm worried businesses won't want to invest, that projects will stall."