The rating on New York City's bonds reflects * Improved financial performance. The city has produced recent budget surpluses, demonstrated willingness to curtail expenditure growth, and reduced the 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. * Improved economy. Continued steady improvement in the city's economy is highlighted by strong Wall Street-driven income gains combined with moderate increases in employment. * Balanced budgets. Continued production of GAAP balanced budgets reflect, in part, the city's strong financial control systems. A higher
