The rating on New York City, N.Y.'s bonds reflects: Improved financial performance as demonstrated by repeated budget surpluses, restrained expenditure growth, and progress in reducing out-year gaps. In addition, the city has started to experience an increase in property tax revenues and has limited its use of nonrecurring revenues. The rating anticipates that the city will continue to progress toward balancing ongoing revenue and expenditures while maintaining its use of conservative budget assumptions; Continued economic growth demonstrated by steady improvement in the city's economy highlighted by strong Wall Street-driven income gains combined with increases in employment for the sixth straight year; and Historically strong financial control systems including routine updates to the city's four-year financial plan. A higher rating is
