West Hartford received a competitive rate for the May 28 bond offering, with Standard & Poor’s reaffirming the town’s ‘AAA’ rating with a stable outlook.

By Ronni Newton 

The Town of West Hartford sold $25 million of general obligation bonds on May 28, obtaining a rate of 3.423% True Interest Cost (TIC) for the offering after receiving 19 bids, Town Manager Rick Ledwith said. He told the Town Council Tuesday night that 19 was the most number of bids he ever recalls receiving for a bond offering.

The general obligation bonds will be used to fund projects in the capital improvement program, including the restoration of Isham and Memorial garages; resurfacing and reconstruction of streets; investments in school buildings; updates and improvements at Rockledge  including a retaining wall, water pipe, and renovation of the driving range; stormwater management, irrigation system for Rockledge; and general public improvements including the new Animal Control building, purchase of fire and public works apparatus, and the Eisenhower Park pool, park, and playground improvements.

Town officials said the rates were the best-available at the time of sale, and “an excellent indication of the town’s strong financial position and AAA status.”

In advance of the offering, on Thursday, May 21, Standard & Poor reaffirmed West Hartford’s “AAA” rating – which the town has held since 1974, noting that the town’s “consistent budgetary performance over the past decade has resulted in increased unassigned general fund reserves, with plans to further increase them in the coming years, along with access to additional committed reserves and reserves in other funds.”

Other contributing factors to the AAA rating included the town’s budgeting practices that incorporate a long-term financial trajectory, a proactive response to addressing and managing the town’s large debt and liabilities, a stable and strong property tax base and strong tax collection history, and although most of the tax base is residential, “West Hartford has a substantial local commercial base and is a regional retail and restaurant destination,” according to S&P. The rating agency “also cited the town’s 2021 decision to issue pension obligation bonds to fund its pension system’s unfunded actuarial accrued liability and to stabilize fixed costs as a positive,” town officials noted.

“The stable outlook reflects our view that the town’s economy and management practices will continue to support positive financial performance and growing reserves while management successfully addresses its large debt and retirement liabilities,” S&P Global said in their published release of the rating.

“West Hartford’s AAA bond rating from Standard & Poor’s is a testament to our community’s long-standing commitment to fiscal responsibility, strategic planning, and sound financial management,” Mayor Shari Cantor said in a statement. “This prestigious rating reflects the strength of our local economy and the confidence that independent financial experts have in our ability to meet our obligations while continuing to invest in the services, infrastructure, and quality of life that make West Hartford such a special place to live and work. Maintaining this highest possible rating helps us secure the lowest borrowing costs, ultimately saving taxpayer dollars and supporting our vision for a strong and vibrant future.”

Town Manager Rick Ledwith said, “West Hartford’s AAA bond rating reflects decades of prudent financial stewardship and a commitment to maintaining the town’s strong fiscal health. This distinction not only demonstrates confidence in our financial management practices but also helps us minimize borrowing costs and continue making strategic investments that enhance the quality of life for our residents.”

“West Hartford’s consistent financial performance, increasing reserves, and strong management practices continue to distinguish the Town as a leader in municipal fiscal stewardship,” said Interim Finance Director Pattie Lewis. “Combined with our diverse and resilient local economy, these strengths support the Town’s long-term financial stability and help preserve our AAA bond rating.”

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