Town gets A+ for its financial planning
Published 5:18 pm, Wednesday, October 17, 2012
New Milford's Town Council received a report in superlatives last week on the town's credit overview and debt analysis.
He explained that New Milford, with its AAI rating, has been able to capture low-interest rates on borrowing, given the current financial environment where all interest rates have come down on short- term borrowing and long-term borrowing.
Mr. Barnabe praised the town's finance director, Ray Jankowski, for his planning for the town's financial future.
The town's current debt service is between $5 million and $6 million, relatively low on a per-capita basis and as a percentage of the town's budget, he said.
As borrowing is paid off, New Milford aggregates future debt, keeping it constant to avoid a surge, Mr. Barnabe said.
The town is now borrowing at a rate even lower than what is offered by the State of Connecticut, he said.
The town's financial position is strong and its fund balance is relatively high, Mr. Barnabe said. Pension funding, at 82 percent, meets the yearly actuarial recommended contribution, he said.
Mr. Barnabe concluded the town is actively managing new capital projects in a way to keep debt service relatively flat.
-- Susan Tuz