The Rating Outlook is Stable.
The bonds are a general obligation of the town secured by its full faith and credit and unlimited taxing authority.
KEY RATING DRIVERS
AFFLUENT SOCIOECONOMIC PROFILE: Positive economic indicators include very high income levels, high market value (MV) per capita, and exceptionally low unemployment and poverty rates. The town is predominantly residential, benefiting from its proximity to the
STRONG FINANCIAL PERFORMANCE:
LOW TO MODERATE DEBT LEVELS:
MANAGEABLE EMPLOYEE RETIREMENT COSTS: Pension and other post-employment benefit (OPEB) expenses represent a manageable portion of the budget but are expected to increase as pension costs continue to rise. Liabilities are well managed.
The rating is sensitive to shifts in fundamental credit characteristics including the town's strong financial management practices. The Stable Outlook reflects Fitch's expectation that such shifts are highly unlikely.
The town is located 20 miles southeast of
AFFLUENT BASE DRIVES ECONOMY
Healthcare, retail and service-related industries employ the largest percentage of people, with
The town's taxable valuation declined modestly through the recession, stabilizing in fiscal 2013 at
STRONG FINANCIAL PERFORMANCE
The town's financial profile remains strong, as operating surpluses in the last four fiscal years have bolstered general fund reserves to strong levels resulting in strong liquidity. Fiscal 2013 ended with a net operating surplus (after transfers) of
Continued strong financial performance is expected for fiscal 2014. Management is projecting a
The maximum levy to levy increase for fiscal 2015 under Proposition 2 1/2 is
LOW TO MODERATE DEBT RATIOS
Overall debt levels are moderate at
MANAGEABLE EMPLOYEE RETIREMENT COSTS
Employee retirement benefit liabilities represent an affordable percentage of governmental fund spending and do not pressure financial flexibility. The town manages a defined benefit plan for its employees, excluding teachers, who are covered under the state's plan. The annual required pension contribution (ARC) for fiscal 2013 totaled
Fitch views positively the town's efforts to manage its future OPEB liability through the establishment of a trust in fiscal 2008 and carefully managed employee health benefits, with retirees contributing 50% of health insurance costs. As a result, the unfunded liability has fallen from
For fiscal 2013, the town's carrying costs, including debt service, pension ARC, and OPEB contribution, totaled an affordable 11.7% of total governmental fund spending.
Additional information is available at 'www.fitchratings.com'.
In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope,
--'Tax-Supported Rating Criteria' (
--'U.S. Local Government Tax-Supported Rating Criteria' (
Tax-Supported Rating Criteria
U.S. Local Government Tax-Supported Rating Criteria
Source: Fitch Ratings
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