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Tolland Maintains Strong Financial Rating

Standard & Poor's and Fitch released their financial reports on Tolland last week.

It looks like the Town of Tolland has a strong financial future, according to the reviews of Standard and Poor's and Fitch, both of which have maintained the town's strong AA+ rating.

According to the Standard and Poor's notification letter, the town received a high rating for several reasons:

  • General obligation bonds amounting to $9.755 million, which falls within the recommended range of totalling 8 - 10 percent of annual expenditures
  • A dependable revenue source with the town's residential tax base, with consistent over the
  • Prudent budgeting
  • A solid debt management plan
  • Well-managed post-employment obligations (i.e. pensions). Teacher pensions are paid by the state, according to the letter. Town employees participate in a defined contribution plan.

Tolland's current bonds are due in full by 2022. The town has a debt management plan available on its website.

According to the S&P letter, if the town's finances remain positive, its rating may be increased in following years.

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Town Manager Steven Werbner said that he hopes Tolland reaches a AAA rating soon, which is also one of his professional goals.

"In this economic climate, we're really pleased to see how supportive both rating agencies are of our financial condition," he said.

A strong financial rating results in better interest rates for the town.

S&P estimates Tolland's market value to be worth $1.85 billion.

 

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