Moody's re-affirms Fairfield's top Aaa credit rating

Moody's Investors Service has re-affirmed the town's top Aaa credit rating, this time in preparation for an impending bond sale.

The town plans to sell $37.6 million in bonds and $12.1 million in bond anticipation notes to permanently refinance maturing bond anticipation notes and to finance the completion of the Fairfield Metro railroad station and various school and town improvements.

"We're going to be authorizing bonds in two weeks," town Fiscal Officer Paul Hill said Wednesday. "We're already getting calls from major financial institutions anxious to buy our debt, which is encouraging."

First Selectman Michael Tetreau said in a statement the news is "a great testament to Fairfield's financial strength that Moody's has re-affirmed our town with the highest rating it can achieve along with a stable outlook. I am very proud that the town has demonstrated strong financial leadership to improve general fund reserves and address long-term liabilities."

The Moody's report mentions an increase in the recently adopted town budget's contingency account to a level of $1.1 million.

The Representative Town Meeting had cut $850,000 from that account in approving the 2012-13 budget, and town departments have had to cut their spending to make up for that reduction so the town has a financial cushion in making labor contract agreements. Some of the measures undertaken to accommodate the contingency cut include fewer library hours and no guards checking parking permits at some of the town's beaches.

The report also cites "significant improvement" to general fund reserves and "marked progress" toward eliminating a long-standing deficit in the town's internal service fund.

"Future rating reviews will continue to consider the town's maintenance of satisfactory general fund reserves and ability to fully fund its internal service obligations," the report states.