TROY, NY (January 22, 2022) – Mayor Patrick Madden issued the following statement regarding the City’s historic final debt payment to the Municipal Assistance Corporation (MAC) last week, the latest accomplishment in the Madden administration’s record of financial oversight and budgetary discipline.
“After 25 years, the City made our final payment to the Troy Municipal Assistance Corporation (MAC). This ends the City’s annual debt obligations to the MAC, a result of repeated and unchecked overspending and shortsighted financial decisions of then-City leaders nearly four decades ago.
“This week’s milestone is the result of my administration’s laser-focus on rebuilding the City’s finances, ending the practices of one-shots to meet annual costs, sale of City assets to meet annual expenses, and strong, aggressive oversight of City budgets. We made tough choices, and the results speak for themselves.
“This establishes a path forward for the City to address long-neglected assets, including parks, pools, and municipal facilities, water and sewer infrastructure, and strengthen the delivery of City services.
“While completion of our MAC obligations is a historic accomplishment and great news for taxpayers, I cannot stress enough that much more work is ahead of us.
“Let me be clear: as long as I am mayor, this administration will serve as a check and balance against the return of poor financial practices and politically-driven decision making that previously brought the City to the fiscal cliff.
“Getting over the finish line required some politically tough choices these past 6 years. I am grateful to those on the council who accepted that risk and worked with us to bring this chapter in our history to a conclusion. I also express my thanks to the Office of State Comptroller, and the countless New York State and City staff who assisted with managing and coordinating the City’s MAC obligations during the duration of this process.
“We are clear-eyed about the challenges ahead. But, by working together we can build a stronger, brighter tomorrow for future generations of Trojans.”
The Troy MAC is a corporate governmental agency established in 1996 to help the City avoid bankruptcy due to repeated overspending by City leaders during the 1980s and a controversial lease purchase agreement of City Hall. Approximately $65M of financial assistance was provided by New York State in 1996 to resolve the City’s then-outstanding debt obligations and established a repayment schedule for the subsequent two and a half decades. Since 1996, the City of Troy has made annual payments of approximately $6-7M to the MAC.
On January 18th, 2022, the City’s final debt payment to the Municipal Assistance Corporation (MAC) was made. This final payment triggers dissolution of the MAC, a multi-month process which marks the end of the city’s annual MAC debt obligations. It is anticipated that the dissolution will be complete by the end of 2nd quarter of this year.
Last week, the City of Troy’s bond credit rating was upgraded to A1 from A2 by Moody’s Investors Services. S&P Global Ratings revised its outlook of the City’s A bond credit rating to positive from stable. The updates to the City’s credit rating represent the continued overall positive outlook for the City’s financial condition from two of the world’s leading credit rating agencies. Both agencies cited the retirement of MAC debt as a factor in the ratings improvements.
John Salka, Communications Director
[email protected] / (518) 279-7131