FAIRFIELD, Conn. Fairfields taxpayers can expect low interest rates on the towns debt to continue into the future. Moodys upgraded the outlook on Fairfields Aaa credit rating from negative to stable this week.
It is a great testament to Fairfields financial strength that Moodys has affirmed our community with the highest rating it can achieve along with a stable outlook, First Selectman Michael Tetreau said in a press release. The concerted efforts among the Board of Selectmen (BOS), Board of Finance (BOF) and RTM over the past few years have been a critical component to the Town earning these high marks.
Moodys first gave Fairfields Aaa rating a negative outlook in 2010. The main reason for the change was the negative balance towns Internal Service Fund, its reserve bank account for town-funded employee insurance. Since then, the town has made extra payments into the fund to correct the problem. Moodys cited those payments, and the towns growing real estate development, as its reason for restoring a stable outlook.
I am extremely pleased that Moodys has recognized the bi-partisan efforts made over the past 24 months to strengthen an already sound financial position, town Fiscal Officer Paul Hiller said in a press release. The budget, as proposed by the First Selectman and passed by the Board of Selectmen, and Board of Finance, secures a strong financial future for our Town.
Like an individuals credit rating, the towns credit rating helps determine the interest rates it will pay on debt it takes out. Each summer the town issues municipal bonds to pay for its long-term construction projects.
For example, last year Fairfield sold $41 million in bonds. The towns Aaa credit rating helped it get a 0.19 percent interest rate on those bonds, the lowest in the state. A stronger credit rating could mean lower taxes for Fairfield residents, as the towns debt payments make up about 9.5 percent of its annual spending.
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