Moody’s Investors Service has reaffirmed the Town of Simsbury’s Aaa bond rating – Moody’s highest rating – as the Town prepares to issue $5.56 million in General Obligation Bonds this month.
According to an official release from Moody’s, the rating was based on Town strengths including its conservative financial management practices which have resulted in a history of positive operating results, a stable reserve position and a stable tax base. Moody’s noted that the Town “has recorded operating surpluses in each of the last five fiscal years, consistently maintaining satisfactory total General Fund balance levels between 9% and 12% of revenues.” It also highlighted the Town’s “proactive approach” toward funding its other post employment benefit (“OPEB”) obligations and pointed out that the Town remains committed to its historical practice of funding 100% of its annual required contributions to the Town’s pension plans and OPEB funds.
“This rating is the result of hard work by Town staff and a clear commitment from the Boards of Selectmen, Education and Finance to ensure that our spending is consistent with economic realities,” said First Selectman Mary Glassman. “The Town’s success at recouping storm costs and returning over $2.6 million to the General Fund, with more on the way, played a significant part in maintaining this excellent rating.” Mrs. Glassman said she is proud that the Town received its first Aaa bond rating in 2010 and has maintained the rating during difficult economic conditions.
Proceeds of the bonds will finance capital projects at the town’s Simsbury Farms recreation complex, school roof replacement and other capital needs. The bond sale is scheduled to take place on February 26, 2013.