Tolland S&P Rating Reportby
Standard & Poor’s rating report affirmed Tolland’s AAA rating with a stable outlook.
From our Tolland S&P Rating Report:
"Standard & Poor's Ratings Services assigned its 'AAA' long-term rating to Tolland, Conn.'s 2015 general obligation (GO) bonds and affirmed its 'AAA' long-term rating on the town's parity debt outstanding. The outlook is stable. The bonds are secured by the town's full faith and credit pledge. We understand bond proceeds will be used to retire existing bond anticipation notes and for road improvements, upgrades to the Tolland Public Library, and a school security installation, among other capital projects. The rating reflects our opinion of the following factors for the town:
- • Very strong economy, with access to a broad and diverse metropolitan statistical area (MSA);
- • Very strong management, with "strong" financial policies and practices under our financial management assessment (FMA) methodology;
- • Strong budgetary performance, with a slight operating surplus in the general fund and an operating surplus at the total governmental fund level;
- • Strong budgetary flexibility, with an available fund balance in fiscal 2014 of 14.7% of operating expenditures;
- • Very strong liquidity, with total government available cash of 21.2% of total governmental fund expenditures and 2.6x governmental debt service, and access to external liquidity we consider strong;
- • Strong debt and contingent liability position, with debt service carrying charges of 8.3% of expenditures and net direct debt that is 74.3% of total governmental fund revenue and low overall net debt at less than 3% of market value and rapid amortization with 68.4% of debt scheduled to be retired in 10 years; and Strong budgetary flexibility with available reserves at 13.8% of operating expenditures in fiscal 2013; and
- • Very strong institutional framework.
Very strong economy We consider Tolland's economy very strong. The town, with an estimated population of 14,931, is located in Tolland County in the Hartford-West Hartford-East Hartford MSA, which we consider to be broad and diverse. The town has a projected per capita effective buying income of 140% of the national level and per capita market value of $124,470."
The conclusion is that our rating will not change in the next two years.