The bond rating upgrade Bristol got last week paid off big this week.
At a Wednesday bond sale, the city managed to sell two different bonds at rates that officials never dreamed possible.
The results, which will save taxpayers as much as $250,000, were “beyond the wildest imagination,” said Mayor Art Ward.
Eastern Bank Capital Markets, based in Boston, bought up the city’s bonds with rates lower than even AAA-rated communities were able to secure on sales the previous day.
“We just set the new standard,” Comptroller Glenn Klocko. “Amazing.”
Finance Chairman Rich Miecznikowski said he “thrilled that we got such a great rate.”
David Bertnagle, the city’s chief accountant, said that because of the low interest rates the city has to pay to bondholders, there won’t be a need to raise the debt service payment levels in the budget.
He said that officials were eyeing the possibility of raising the payment level in the budget by as much as $250,000 next year alone in order to cover the borrowing tab. But that won’t be necessary, Bertnagle said, because the rates were so good.
“It looks like our hard work paid off,” said Matthew Spoerndle of Milford’s Phoenix Advisors, the city’s financial consultant.
A number of city leaders watched the bid projections on a wall in Klocko’s office as Spoerndle maneuvered through the iDeal website to show incoming bids.
They expressed amazement when they saw the long-term rate that Eastern Bank Capital Markets offered, beating out eight competing bids.
Sam Caligiuri, the city’s bond counsel, called the results “great” and a credit to the city’s fiscal management.
“It shows how well run Bristol is,” said Caligiuri, a Republican state senator.
The taxable bonds were sold to reimburse the city's rainy day fund for the money spent on the downtown mall site. The tax exempt bonds were sold to cover road, sewer and park projects.
Rates Bristol got
$8.9 million, 16-year tax-exempt bonds – 3.12 percent
$7.4 million, 1-year taxable note – 2.5 percent
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
Showing posts with label bond ratings. Show all posts
Showing posts with label bond ratings. Show all posts
February 4, 2009
January 30, 2009
Bristol's credit report card excellent
The city got a stunning but entirely welcome gift Friday: a bond ratings upgrade that will save taxpayers at least $100,000 in the years ahead.
"We're happy campers," said Mayor Art Ward, who pumped his fist in the air in joy at the unexpected news.Astonishing city officials who only sought to maintain Bristol's existing bond rating, Standard & Poors awarded the city an upgrade Friday on its credit rating so that it is only one step behind the best-rated municipalities in the country.
City Comptroller Glenn Klocko called it "freaking phenomenal," saying it would save taxpayers $100,000 in next week's bond sales alone.
“We’re shocked,” Klocko said. “I’m just amazed. Never in my wildest dreams did I think we’d get this.”
City Finance Chairman Rich Miecznikowski said the higher rating will be "a big plus for us" in future bond sales as well.The other two rating agencies, Moody's Investor Service and Fitch Ratings, left the city's rating as it has been.
But Fitch's report indicated it might upgrade Bristol in the months ahead as the firm revises its way of dealing with municipal bond ratings generally. Moody's is also eyeing changes that could push Bristol's rating higher.
Bristol's new Standard & Poor’s rating is significantly higher than the city's demographics would normally indicate.
That’s because it has managed to take care of its money so much better than most towns, officials said.
“Bristol’s management is very, very impressive,” said Matthew Spoerndle of Milford’s Phoenix Advisors, the city’s financial consultant.
He said that upgrades these days are “few and far between” but Bristol’s financial record indicated that it deserved one.
Spoerndle called it “really tremendous” for the city and “extremely good news” for taxpayers.
He said that within minutes of getting word of the upgrade he heard from four or five firms asking about purchasing Bristol’s bonds at Wednesday’s planned sale of $8.9 million in long-terms municipal bonds and $7.4 million in taxable notes.
The top tier municipal bonds are in high demand nowadays, Spoerndle said, because there’s so much uncertainty about many other bonds.
That’s likely to translate into lower interest rates for the city when it sells its bonds next week, officials said.
The city made its pitch to the rating agencies on Tuesday, spending about 90 minutes on conference calls with each. A number of city officials spoke, including Ward, Klocko and economic development director Jonathan Rosenthal.
The Standard & Poor’s final report won’t be ready until Monday, officials said, but Spoerndle said he was told directly by the S&P analysts that the upgrade was a sure thing.
Moody’s said that it expects Bristol’s “overall financial position to remain healthy over the near term given the track record of strong fiscal management, conservative budgeting practices and adherence to prudent fiscal policies.”
Fitch said that “despite below average economic indicators,” Bristol has “sound financial flexibility” and a “well-managed overall fixed-cost burden.”
It touted Bristol’s “conservative financial management” for creating healthy reserve funds, flush pension funds, and relatively low debt.
Bristol’s bond ratings
Moody’s – Aa3
S& P – AA+
Fitch – AA
For the city’s fiscal overseers, having bond rating analysts pore over the books every two or three years leads to a kind of report card on Bristol’s finances.
So it’s no surprise they’re ecstatic about getting what amounts to an A- from Standard & Poor’s, one of America’s top two ratings firms.
Though the written analysis used by the Wall Street firm isn’t yet available, it’s pretty clear from the judgments of Moody’s Investor Service and Fitch Ratings what Bristol’s been doing right even in these tough economic times.
At lunchtime Friday, city Comptroller Glenn Klocko read the ratings reports from Moody’s and Fitch.
He proclaimed himself thrilled to have convinced them to hold the city’s bond rating steady despite rising unemployment, sinking state aid and a cloudy economic future for the entire country.
Klocko said it would have seemed “absurd to seek an upgrade” in such hard times.
But a few hours later, the city’s financial consultant called to say that’s exactly what Bristol pulled off as he passed on word from Standard & Poor’s that Bristol would take a step up in the financial world to join other towns with AA+ ratings, including Cheshire and Danbury.
Only a smattering of towns outside Fairfield Country have the higher AAA rating – Avon and West Hartford among them – but most of Connecticut’s 169 cities and towns have significantly lower ratings than Bristol.
Snagging the higher rating from S&P puts Bristol ahead of many towns that are generally wealthier, including Newington, South Windsor, Trumbull Middletown, Wethersfield and Enfield.
Klocko said that’s the result of many years of building up reserves in Bristol and refusing to fork over money for projects that cost too much.
He said, for instance, that a key moment in recent times came when the Board of Finance blocked a City Council move to create a recreation complex on the former Roberts property, a controversial call that enraged some but kept spending in check.
“Now we are receiving the benefit of their unpopular decisions,” Klocko said.
That ability to sock away money during good times has made it possible for Bristol to cope with downturns, Klocko said.
“We can weather this storm because we have reserves,” Klocko said.
Another financial highlight is that Bristol is one of only a few cities in New England that has its employee pension fund completely paid for – and then some.
Klocko said he told the ratings analyst the city lost more than $100 million on its pension investments during last fall’s market freefall. There was a long silence at the other end, the comptroller said.
Then he told them that the city still had well over what it needed to pay expected pension obligations, Klocko said, adding that city leaders for three decades deserve credit for the policy that made it possible.
The upgrade from S&P, Mayor Art Ward said, “speaks very well of the process that’s been practiced for many, many years through many administrations” in Bristol.
He said that city officials, including city councilor and finance board members, generally act as a team with the same aim: to keep Bristol’s solid financial standing intact while providing necessary services.
Ward said the upgrade “gives us hope for the future” because outside experts can see what the city can do.
“We’re still healthy,” the mayor said, at a time when many municipalities are laying people off and wondering how to stay afloat.
The rating upgrade also sends a message, Ward said, that “we need to maintain our prudent financial oversight” because it pays off.
Check back later. I hope there will be some documents linked here that go into this in much more detail.
PDF of Moody's bond rating report on Bristol
Questions that Fitch askd city officials to answer during their presentation (PDF)
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
"We're happy campers," said Mayor Art Ward, who pumped his fist in the air in joy at the unexpected news.Astonishing city officials who only sought to maintain Bristol's existing bond rating, Standard & Poors awarded the city an upgrade Friday on its credit rating so that it is only one step behind the best-rated municipalities in the country.
City Comptroller Glenn Klocko called it "freaking phenomenal," saying it would save taxpayers $100,000 in next week's bond sales alone.
“We’re shocked,” Klocko said. “I’m just amazed. Never in my wildest dreams did I think we’d get this.”
City Finance Chairman Rich Miecznikowski said the higher rating will be "a big plus for us" in future bond sales as well.The other two rating agencies, Moody's Investor Service and Fitch Ratings, left the city's rating as it has been.
But Fitch's report indicated it might upgrade Bristol in the months ahead as the firm revises its way of dealing with municipal bond ratings generally. Moody's is also eyeing changes that could push Bristol's rating higher.
Bristol's new Standard & Poor’s rating is significantly higher than the city's demographics would normally indicate.
That’s because it has managed to take care of its money so much better than most towns, officials said.
“Bristol’s management is very, very impressive,” said Matthew Spoerndle of Milford’s Phoenix Advisors, the city’s financial consultant.
He said that upgrades these days are “few and far between” but Bristol’s financial record indicated that it deserved one.
Spoerndle called it “really tremendous” for the city and “extremely good news” for taxpayers.
He said that within minutes of getting word of the upgrade he heard from four or five firms asking about purchasing Bristol’s bonds at Wednesday’s planned sale of $8.9 million in long-terms municipal bonds and $7.4 million in taxable notes.
The top tier municipal bonds are in high demand nowadays, Spoerndle said, because there’s so much uncertainty about many other bonds.
That’s likely to translate into lower interest rates for the city when it sells its bonds next week, officials said.
The city made its pitch to the rating agencies on Tuesday, spending about 90 minutes on conference calls with each. A number of city officials spoke, including Ward, Klocko and economic development director Jonathan Rosenthal.
The Standard & Poor’s final report won’t be ready until Monday, officials said, but Spoerndle said he was told directly by the S&P analysts that the upgrade was a sure thing.
Moody’s said that it expects Bristol’s “overall financial position to remain healthy over the near term given the track record of strong fiscal management, conservative budgeting practices and adherence to prudent fiscal policies.”
Fitch said that “despite below average economic indicators,” Bristol has “sound financial flexibility” and a “well-managed overall fixed-cost burden.”
It touted Bristol’s “conservative financial management” for creating healthy reserve funds, flush pension funds, and relatively low debt.
Bristol’s bond ratings
Moody’s – Aa3
S& P – AA+
Fitch – AA
For the city’s fiscal overseers, having bond rating analysts pore over the books every two or three years leads to a kind of report card on Bristol’s finances.
So it’s no surprise they’re ecstatic about getting what amounts to an A- from Standard & Poor’s, one of America’s top two ratings firms.
Though the written analysis used by the Wall Street firm isn’t yet available, it’s pretty clear from the judgments of Moody’s Investor Service and Fitch Ratings what Bristol’s been doing right even in these tough economic times.
At lunchtime Friday, city Comptroller Glenn Klocko read the ratings reports from Moody’s and Fitch.
He proclaimed himself thrilled to have convinced them to hold the city’s bond rating steady despite rising unemployment, sinking state aid and a cloudy economic future for the entire country.
Klocko said it would have seemed “absurd to seek an upgrade” in such hard times.
But a few hours later, the city’s financial consultant called to say that’s exactly what Bristol pulled off as he passed on word from Standard & Poor’s that Bristol would take a step up in the financial world to join other towns with AA+ ratings, including Cheshire and Danbury.
Only a smattering of towns outside Fairfield Country have the higher AAA rating – Avon and West Hartford among them – but most of Connecticut’s 169 cities and towns have significantly lower ratings than Bristol.
Snagging the higher rating from S&P puts Bristol ahead of many towns that are generally wealthier, including Newington, South Windsor, Trumbull Middletown, Wethersfield and Enfield.
Klocko said that’s the result of many years of building up reserves in Bristol and refusing to fork over money for projects that cost too much.
He said, for instance, that a key moment in recent times came when the Board of Finance blocked a City Council move to create a recreation complex on the former Roberts property, a controversial call that enraged some but kept spending in check.
“Now we are receiving the benefit of their unpopular decisions,” Klocko said.
That ability to sock away money during good times has made it possible for Bristol to cope with downturns, Klocko said.
“We can weather this storm because we have reserves,” Klocko said.
Another financial highlight is that Bristol is one of only a few cities in New England that has its employee pension fund completely paid for – and then some.
Klocko said he told the ratings analyst the city lost more than $100 million on its pension investments during last fall’s market freefall. There was a long silence at the other end, the comptroller said.
Then he told them that the city still had well over what it needed to pay expected pension obligations, Klocko said, adding that city leaders for three decades deserve credit for the policy that made it possible.
The upgrade from S&P, Mayor Art Ward said, “speaks very well of the process that’s been practiced for many, many years through many administrations” in Bristol.
He said that city officials, including city councilor and finance board members, generally act as a team with the same aim: to keep Bristol’s solid financial standing intact while providing necessary services.
Ward said the upgrade “gives us hope for the future” because outside experts can see what the city can do.
“We’re still healthy,” the mayor said, at a time when many municipalities are laying people off and wondering how to stay afloat.
The rating upgrade also sends a message, Ward said, that “we need to maintain our prudent financial oversight” because it pays off.
Check back later. I hope there will be some documents linked here that go into this in much more detail.
PDF of Moody's bond rating report on Bristol
Questions that Fitch askd city officials to answer during their presentation (PDF)
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
City snags a bond upgrade
Astonishing city officials who only sought to maintain Bristol's existing bond rating, Standard & Poors today awarded the city an upgrade its credit rating that puts it only one step behind the best-rated municipalities in the country.
"We're happy campers," said Mayor Art Ward, who pumped his fist in the air in joy at the unexpected news.
City Comptroller Glenn Klocko called it "freaking phenomenal," saying it would save taxpayers $100,000 in next week's bond sales alone.
City Finance Chairman Rich Miecznikowski said the higher rating will be "a big plus for us" in future bond sales as well.
The other two rating agencies, Moody's and Fitch, left the city's rating as it has been. But Fitch's report indicated it might upgrade Bristol in the months ahead as the firm revises its way of dealing with municipal bond ratings generally. Moody's is also eyeing changes that could push Bristol's rating higher.
Bristol's rating is significantly higher than the cty's demographics would normally indicate because it has managed to take care of its money so much better than most towns.
It has a large rainy day fund, overfunded pension plans and policies over the long run that have proven its commitment to a fiscal conservatism that bond buyers appreciate.
I'll have more on this later today.
Update: Here is Fitch's report today on Bristol's finances:
NEW YORK - (Business Wire) Fitch Ratings has assigned an 'AA' rating to the city of Bristol, Connecticut's $8.9 million of tax-exempt general obligation (GO) bonds, issue of 2009, and an 'F1+' rating to the city's $7.4 million of taxable GO bond anticipation notes (BANs). The bonds and BANs, scheduled to sell competitively on Feb. 4, will finance various general purpose and school projects in the city. Fitch also affirms the 'AA' rating on the city's approximately $51.8 million of outstanding GO bonds. The Rating Outlook on the GO bonds is Stable.
The 'AA' rating is based on Bristol's sound financial flexibility, well-managed overall fixed-cost burden, and slightly below-average economic indicators. Strong financial management, including prudent budgetary practices, has contributed to consistently healthy reserve levels, which provide ample operating flexibility particularly in the current recessionary environment. Pensions are significantly overfunded and future capital needs appear manageable. A key rating driver is the city's ability to maintain its financial flexibility during the current recession, while also continuing to diversify the local economy. The short-term 'F1+' rating reflects the city's general credit characteristics.
Bristol is located in Hartford County approximately 16 miles west of the state capitol. The Entertainment and Sports Programming Network (ESPN) has its headquarters in the city, accounting for 11% of the residential employment base and 5.3% of fiscal 2009 taxable assessed valuation. The company's approximately $1 billion of infrastructure investments this decade and longstanding presence in the city somewhat offset Fitch's concerns about the single-employer economic concentration. Bristol's 229 Technology Park is fully occupied and the Southeast Bristol Industrial Park, which can accommodate up to 750,000 square feet of industrial space, was recently completed. The Southeast Bristol Industrial Park and successful redevelopment of the 17-acre downtown mall area should help broaden the local economy and improve labor market conditions over the next several years. The city's November 2008 unemployment rate grew to 7% from 5% the prior year, and remained above the county, state, and national levels. Population growth has been modest this decade and per capita income levels are below the high state average but slightly above the national level.
Bristol's conservative financial management has resulted in consistently healthy reserve levels. Fiscal 2008 ended with a $1.3 million surplus, which brought the unreserved general fund balance to $27.2 million, or a sound 13.2% of spending. Reflecting the city's prudent budgeting practices, economically sensitive investment income, building permit fees, and conveyance taxes ended the year near or above budgeted amounts. Officials expect to end fiscal 2009 with another modest general fund surplus after realizing a large 51.8% increase in the tax base stemming from the Oct. 1, 2007 revaluation and minimizing expenditures during the fiscal year; the revaluation, effective for fiscal 2009, underscores the health of the local tax base. Officials expect minimal to no growth in the fiscal 2010 operating budget, reflecting tightening budgetary conditions stemming from the national recession.
Overall debt is low at $1,090 per capita, or 1% of taxable market value, and debt amortizes at the rapid rate of 69.4% within 10 years. Bristol's fiscal 2008 debt service burden represented a low 3.4% of general and debt service fund spending, which provides the city with sufficient flexibility to issue up to $28 million in bonds for two new school projects within the next five years. Pensions remain considerably overfunded despite significant investment losses in calendar 2008, and the city is developing plans to manage its $72 million other post-employment benefits (OPEB) liability. An OPEB trust fund was created in the current fiscal year.
Fitch issued an exposure draft on July 31, 2008 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework'.) At this time, Fitch is deferring its final determination on municipal recalibration. Fitch will continue to monitor market and credit conditions, and plans to revisit the recalibration in the first quarter of 2009.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Ryan A. Greene, +1-212-908-0315
Jessalynn K. Moro, +1-212-908-0568
Media Relations:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
"We're happy campers," said Mayor Art Ward, who pumped his fist in the air in joy at the unexpected news.
City Comptroller Glenn Klocko called it "freaking phenomenal," saying it would save taxpayers $100,000 in next week's bond sales alone.
City Finance Chairman Rich Miecznikowski said the higher rating will be "a big plus for us" in future bond sales as well.
The other two rating agencies, Moody's and Fitch, left the city's rating as it has been. But Fitch's report indicated it might upgrade Bristol in the months ahead as the firm revises its way of dealing with municipal bond ratings generally. Moody's is also eyeing changes that could push Bristol's rating higher.
Bristol's rating is significantly higher than the cty's demographics would normally indicate because it has managed to take care of its money so much better than most towns.
It has a large rainy day fund, overfunded pension plans and policies over the long run that have proven its commitment to a fiscal conservatism that bond buyers appreciate.
I'll have more on this later today.
Update: Here is Fitch's report today on Bristol's finances:
NEW YORK - (Business Wire) Fitch Ratings has assigned an 'AA' rating to the city of Bristol, Connecticut's $8.9 million of tax-exempt general obligation (GO) bonds, issue of 2009, and an 'F1+' rating to the city's $7.4 million of taxable GO bond anticipation notes (BANs). The bonds and BANs, scheduled to sell competitively on Feb. 4, will finance various general purpose and school projects in the city. Fitch also affirms the 'AA' rating on the city's approximately $51.8 million of outstanding GO bonds. The Rating Outlook on the GO bonds is Stable.
The 'AA' rating is based on Bristol's sound financial flexibility, well-managed overall fixed-cost burden, and slightly below-average economic indicators. Strong financial management, including prudent budgetary practices, has contributed to consistently healthy reserve levels, which provide ample operating flexibility particularly in the current recessionary environment. Pensions are significantly overfunded and future capital needs appear manageable. A key rating driver is the city's ability to maintain its financial flexibility during the current recession, while also continuing to diversify the local economy. The short-term 'F1+' rating reflects the city's general credit characteristics.
Bristol is located in Hartford County approximately 16 miles west of the state capitol. The Entertainment and Sports Programming Network (ESPN) has its headquarters in the city, accounting for 11% of the residential employment base and 5.3% of fiscal 2009 taxable assessed valuation. The company's approximately $1 billion of infrastructure investments this decade and longstanding presence in the city somewhat offset Fitch's concerns about the single-employer economic concentration. Bristol's 229 Technology Park is fully occupied and the Southeast Bristol Industrial Park, which can accommodate up to 750,000 square feet of industrial space, was recently completed. The Southeast Bristol Industrial Park and successful redevelopment of the 17-acre downtown mall area should help broaden the local economy and improve labor market conditions over the next several years. The city's November 2008 unemployment rate grew to 7% from 5% the prior year, and remained above the county, state, and national levels. Population growth has been modest this decade and per capita income levels are below the high state average but slightly above the national level.
Bristol's conservative financial management has resulted in consistently healthy reserve levels. Fiscal 2008 ended with a $1.3 million surplus, which brought the unreserved general fund balance to $27.2 million, or a sound 13.2% of spending. Reflecting the city's prudent budgeting practices, economically sensitive investment income, building permit fees, and conveyance taxes ended the year near or above budgeted amounts. Officials expect to end fiscal 2009 with another modest general fund surplus after realizing a large 51.8% increase in the tax base stemming from the Oct. 1, 2007 revaluation and minimizing expenditures during the fiscal year; the revaluation, effective for fiscal 2009, underscores the health of the local tax base. Officials expect minimal to no growth in the fiscal 2010 operating budget, reflecting tightening budgetary conditions stemming from the national recession.
Overall debt is low at $1,090 per capita, or 1% of taxable market value, and debt amortizes at the rapid rate of 69.4% within 10 years. Bristol's fiscal 2008 debt service burden represented a low 3.4% of general and debt service fund spending, which provides the city with sufficient flexibility to issue up to $28 million in bonds for two new school projects within the next five years. Pensions remain considerably overfunded despite significant investment losses in calendar 2008, and the city is developing plans to manage its $72 million other post-employment benefits (OPEB) liability. An OPEB trust fund was created in the current fiscal year.
Fitch issued an exposure draft on July 31, 2008 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework'.) At this time, Fitch is deferring its final determination on municipal recalibration. Fitch will continue to monitor market and credit conditions, and plans to revisit the recalibration in the first quarter of 2009.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Fitch Ratings, New York
Ryan A. Greene, +1-212-908-0315
Jessalynn K. Moro, +1-212-908-0568
Media Relations:
Cindy Stoller, +1-212-908-0526
cindy.stoller@fitchratings.com
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
January 27, 2009
City makes pitch to bond rating agencies
City leaders spent much of the day on the phone with ratings experts from the three major bond rating firms today.
If it went half as well as the officials think, Bristol should be fine.
The reports ought be out by Friday or perhaps Monday. It is expected they'll leave the city's bond rating intact, which would be pretty good given the dire budget situation in Hartford.
Both Comptroller Glenn Klocko and Mayor Art Ward said the ratings experts were impressed with the consistent, solid finances of the city, particularly given its demographics, which fall short of most communities with its bond rating.
Helping Bristol along were a long track record of hefty reserves, a fully funded pension plan, experienced managers and more, according to Klocko and Ward.
We'll see what the ratings folks have to say in a few days. Klocko said the reports they issue should give the Board of Finance something to feel good about.
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
If it went half as well as the officials think, Bristol should be fine.
The reports ought be out by Friday or perhaps Monday. It is expected they'll leave the city's bond rating intact, which would be pretty good given the dire budget situation in Hartford.
Both Comptroller Glenn Klocko and Mayor Art Ward said the ratings experts were impressed with the consistent, solid finances of the city, particularly given its demographics, which fall short of most communities with its bond rating.
Helping Bristol along were a long track record of hefty reserves, a fully funded pension plan, experienced managers and more, according to Klocko and Ward.
We'll see what the ratings folks have to say in a few days. Klocko said the reports they issue should give the Board of Finance something to feel good about.
*******
Copyright 2009. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
January 16, 2009
City aims to sell bonds. notes in early February
The city plans to borrowl more than $16 million in early February to recover the costs of a number of projects that are already underway or completed.
Selling the bonds and notes will bring in revenue to replenish the $17 million rainy day fund, which is full of IOUs because officials have dipped into it for several years to cover spending that includes even the purchase of the now demolished downtown mall.
City Comptroller Glenn Klocko said experts are telling him the city might be able to pay as little as 4 percent on the long-term bonds that it’s selling.
That’s half a percent cheaper than he figured just a couple of weeks ago and could mean a savings to taxpayers of $100,000 over the life of the bonds, Klocko said.
“The rates are extremely low,” Klocko said, adding that catching the market at the right moment is “all about timing.”
The City Council and Board of Finance voted to approve the borrowing recently, with city Councilor Mike Rimcoski raising the only real opposition. He said he could not vote to borrow money for buying the mall because he so strongly objected to it.
City Councilor Frank Nicastro, who also opposed the $5.3 million move in 2005, said he abstained because he was not on the council when the mall was purchased.
The city is making a pitch to bond rating agents on Jan. 27 to leave intact the city’s solid financial rating. The bond sale itself is slated for Feb. 5.
Klocko said that next time the city sells bonds, he’s going to try for an upgrade, which would allow Bristol to borrow even more cheaply.
He has a secret weapon, too: ESPN.
It seems that giving the financial analysts a personalized tour of ESPN, including the chance to sit behind the SportsCenter desk for a picture, is such “a hot commodity” that it might help Bristol make its case.
Some projects included in the bond sale:
$4.5 for Rockwell Park renovations
$385,000 to replace Bristol Eastern’s track
$600,000 to reconstruct Allentown Road
$700,000 to repair the North Creek conduit
$800,000 to replace the Main Street culvert
$3.5 million to demolish the mall
$6.3 million to buy the mall
Contact Steve Collins at scollins@bristolpress.com
October 8, 2008
Forget that AAA rating
No sooner do I find that Moody's is changing its policy than the giant credit rating agency decides to postpone the change.
Gail Sussman, group managing director of the public finance department at Moody's Investors Service, sent out an email today announcing that because of the uncertainty in the markets, her company is delaying its plan to rate public and private entities the same way.
For the time being, and perhaps a long time, that means the longstanding policy will remain in place.
So Bristol can be happy with its AA3 rating, which is pretty high for a city with its economy and demographics.
There's more to say about this whole thing, but let me put it into something coherent later in the day. Check back.
Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
October 7, 2008
AAA bond rating may be possible for Bristol
Since Oct. 1, Moody's has been rating municipal bonds using the same criteria as corporate bonds, which is leading to many more communities with high bond ratings.
Given that Bristol isn't far off now, and has both a healthy reserve and an overfunded pension fund, it's likely to reach the top tier when the credit rating agencies take another look.
That's good news for taxpayers.
*******
Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
Given that Bristol isn't far off now, and has both a healthy reserve and an overfunded pension fund, it's likely to reach the top tier when the credit rating agencies take another look.
That's good news for taxpayers.
*******
Copyright 2008. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com
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