Cheektowaga's stable tax base has helped the town keep its strong bond rating in its recent foray to the bond market.
Moody's Investors Service reaffirmed the town's bond rating of Aa3, which matches the top bond rating of Western New York municipalities.

Finance Director Brian M. Krause said the town's presentation to Moody's earlier this summer touched on strengths in the town, such as its 2.5 percent increase in assessments, due in part to commercial redevelopment. The town also went to a single health insurer for its employees, and pay increases for union employees for the next three years will be less than 3 percent.

"We are doing what we can to save on costs," Krause said.

Moody's also cited the town's healthy fund equity levels and manageable debt position in assigning the bond rating. Krause said, when possible, the town generally does not borrow for longer than 15 years.

The past several years the town has issued short-term bond anticipation notes (BANs) to pay for highway equipment.

"We didn't want to buy all our equipment at one time," Krause said.

This year the town went to a 10-year bond, because of change in the market. The BAN interest rate for bond anticipation notes went from 1.5 percent three years ago to an expected 4 percent or higher this year, Krause said. He said the town felt with rising interest rates, it was time to lock in.

Cheektowaga borrowed $3.65 million at an interest rate of 3.98 percent. The funds will be used to buy highway equipment and to redeem $2.9 million in outstanding bonds.

Moody's said it expects the town's tax base, which is largely residential, to remain stable. While the town largely is built out, there is ongoing commercial development, most notably the $60 million expansion at Walden Galleria, and some planned residential growth.

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