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Litchfield again earns high credit rating from Moody's |
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Litchfield First Selectman Leo Paul Jr. said the latest rating from Moody's Investors Service confirms that the town is right on track in its approach to finances. BZ photo
A leading Wall Street credit rating service has once again given the town of Litchfield high marks for its fiscal management.
Moody's Investors Service, which rates municipalities on their finances, last week reaffirmed the town's Aa2 rating. The rating, the same the town received in 2011, is the highest a town Litchfield's size can achieve from Moody's and means it can borrow money at low interest rates, In short, the town is a good credit risk, according to Moody's. "It's yet another indication that we have managed our finances in a successful fashion," First Selectman Leo Paul Jr. said. "We continue to proceed with the same conservative approach that has been a benefit to the taxpayers." There are only two higher rating issued by Moody's: Aaa and Aa1. Litchfield would need a higher tax base and a larger fund balance to move up from Aa2, according to Moody's. "Our residents can be assured that they live in a town that is well-managed financially," Town Treasurer David T. Wilson said. "The rating from Moody's is another sign that our approach is the right one." Moody's in its report on the town's rating said the town has a healthy fund balance, an above-average but manageable debt and a system that is addressing pension costs. Fund balance is an accumulation of budgeted but unspent funds and totals $3.7 million. The town's long-term debt is $29 million, $17.2 million of which was borrowed to fund the $33 million school building project that was completed in 2008. The rating came as the town is preparing to issue $2.9 million in bonds to finance various capital projects this year. Moody's also gave the town a high rating on $425,000 in bond anticipation notes on the school building project. The rating means the town should have no problem making the 2012 payment on funds borrowed for the project.
The town's fiscal health was an issue in the 2011 election, with Democrats saying the town borrows too much money and isn't addressing rising pension costs. Republicans, who rolled to a huge victory in the election, responded by citing the Moody's report from last year. A committee has been formed to study the pension program and will meet for the first time tonight at 7 at Town Hall. The rating from Moody's, according to Town Treasurer David T. Wilson, below, is good news for taxpayers. BZ photo |
