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Moody's move rekindles debt debate

Town officials said a large problem they encountered when dealing with the deficit is the inaccurate figures dating back to 2006, which are still affecting the numbers. Figures from the comptroller's office indicate the deficit may have been as high as $22 million in the recent years.

Mahan said she does not want to play politics with the numbers, which she accused Dustin of doing.

"Dustin works on politics," she said. "My administration is going to work on solutions."

Moody's knocked Colonie rating down twice in 2007, and Colonie Town Supervisor Paula Mahan said the Baa1 rating with a negative outlook is something she has worked hard to improve upon during her administration.

"Removal of the negative outlook reflects our expectation that the town's management team may build on two consecutive years of favorable operational and budgetary results; however, we believe that the town will remain challenged over the medium term to reduce the accumulated deficit fund balance given a significant reliance on economically-sensitive sales and mortgage tax revenue sources," according the report from Moody's.

According to Moody's rating scale "obligations rated baa are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics," further, " money market funds and bond funds rated baa are judged to be of an investment quality similar to baa-rated fixed income obligations " that is, they are considered as medium-grade investment vehicles."

Mahan said things are looking up under her watch.

"This rating will reflect positively on our bottom line as we continue with the hard task of completely eliminating the budget deficit created by the previous administration," said Mahan.

In a recent interview, former Supervisor Mary Brizzell said the lowered bond ratings in 2006-07 had a lot to do with the financial environment.

"A lot had to do with the economy," she said.

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