Ratings Agency Says Seymour’s Finances Are Strong And Managed Well

Kurt Miller

SEYMOUR — While Ansonia, Derby and even traditional economic powerhouse Shelton all had debt rating downgrades recently, the Town of Seymour came out with high marks after its latest review.

A ratings agency affirmed the town’s AA+ rating, and gave the town’s finances a positive outlook going forward.

Unlike Ansonia and Derby, where officials have depleted fund balances (reserve funds) for various reasons, S&P Global Ratings pointed out the town’s available fund balance in fiscal year 2018 was at $7.2 million, or 11.6 percent of operating expenditures.

The analysis S&P Global Ratings also pointed out that Seymour’s finances are in such good shape the town, in anticipation of state aid cuts in 2018, was able to transfer about $4.3 million of reserves in case it had to absorb deep cuts.

The report noted that good fiscal practices are being made into written policies in Seymour, citing the fact town government has a strategic planning committee in place to ensure financial stability in town  — ideally so that fiscal policy doesn’t change wildly every time there’s a new administration in Seymour Town Hall.

The town’s finance board also plays a key role in putting together a spending plan each year.

“Over the last 17 months S & P has been taking a long hard look at a lot of the (credit ratings) in Connecticut,” Miller told the town’s Board of Selectmen Aug. 20. “A lot of Connecticut communities have been put on watch lists, a good number have actually been downgraded (including) several in our area.”

Miller said S &P “was happy to see” companies investing in Seymour, including Thule, which has spent $1.6 million on upgrading its space in the Silvermine Commerce and Technology Park.

Miller said the town’s current credit rating is about as high as it can get for its demographics. The rating is in line with wealthier Fairfield County towns, Miller said. But those towns can receive higher credit ratings because of the salaries the residents in those towns bring home.

“I think we can be very pleased with the AA+,” Miller said.

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