North Tonawanda's credit rating upgraded by Moody's

Marking major financial milestone

Submitted by the City of North Tonawanda Office of the Mayor

After years of disciplined budgeting and reform, the City of North Tonawanda has achieved a major financial milestone: Moody’s Investors Service has officially upgraded the city’s credit rating from A3 back to A2, restoring its pre-2020 status and signaling renewed confidence in North Tonawanda’s financial stability, long-term planning, and economic outlook.

Moody’s, one of the nation’s top credit rating agencies, assesses municipalities based on five key factors: local economic strength, financial management practices, debt burden, leadership effectiveness, and legal framework. A higher rating reduces borrowing costs, saving taxpayers money and improving the city's chances for securing competitive grants and state or federal funding.

“This is more than just a financial win,” Mayor Austin J. Tylec said. “It’s a reflection of the hard work we’ve done to restore fiscal discipline, build stronger reserves, and plan responsibly for the future. While there’s still more to accomplish, we’re in a much more stable and sustainable position today, and that puts us in a stronger place to serve residents and invest in our community’s long-term success.”

In 2020, Moody’s downgraded North Tonawanda’s credit rating from A2 to A3 due to declining reserves and audit findings. By the time Tylec took office in 2022, the city was facing even greater financial strain, including a $2.5 million operating deficit and a downward fiscal trajectory. Throughout that year, the administration began implementing sweeping financial and budgetary improvements to reverse the trend. Toward the end of 2022, as those efforts were underway, the city was notified that another credit rating downgrade was likely based on the previous year’s audit.

In response, Tylec and City Accountant Jeff Zellner engaged directly with Moody’s to outline their recovery strategy. The plan included restructuring the city’s budget, producing more transparent and detailed financial reports, refusing to draw further from the remaining reserves, and pursuing new revenue opportunities – particularly through leveraging grant funding to offset major capital project costs.

“These weren’t just short-term fixes,” Zellner said. “We’re still actively working to improve internal operations and build long-term financial strength into our budgeting process. The rating upgrade shows how far we’ve come, but it also reminds us to stay focused on continued improvement and responsible planning.”

Since 2022, the city’s reserves have grown from just $300,000 to over $3 million, a tenfold increase that establishes a critical safety net for future challenges. And when North Tonawanda returned to the bond market in 2025 to finance infrastructure tied to millions in grant awards, the city’s improved numbers and financial discipline led Moody’s to reevaluate its standing.

With restored reserves, improved financial reporting, and a forward-thinking fiscal strategy, Moody’s officially upgraded North Tonawanda’s credit rating back to A2, a significant sign of momentum for a community focused on long-term stability, investment and growth.

For more information, please contact the mayor’s office.