Standard & Poor's increases Town of Littleton's bond rating from A+ to AA; Debt service savings of $205,000 expected
Standard & Poor's has raised the Town of Littleton's bond rating from A+ to AA. For the $13-million in borrowing the Town is about to do for construction of the new police station, repairs to the Russell Street Elementary School, roadway improvements, and other projects, Town Treasurer Steven Venuti estimates debt service cost savings of $205,000 over 20 years.
According to a report published on August 25, 2009, Standard & Poor's Rating Services has raised its ratings on the general obligation (GO) bonds issued by 29 municipalities (including Littleton) in Maine, Massachusetts, New Jersey, New York, North Carolina, and Pennsylvania whose ratings have been previously constrained by their small size or remote location. The full report is available at the Standard & Poor's website (subscription required).
Excerpt below:
Littleton, MA (AA). Littleton is located 26 miles northwest of Boston and has a very strong income that is 161% of the national level. The population has remained relatively steady since 2004, and is currently 8,695. Countywide unemployment is below the state at 6.9% as of May 2009. The town has a history of stable operations. It closed fiscal 2008 with approximately $3.5 million of available reserves, yielding what we consider a strong 11% of expenditures, combined from the general fund and stabilization fund. Management projects ending fiscal 2009 with a $50,000 drawdown. Littleton has a moderate 12% debt carrying charge, supported by a rapid amortization schedule. We understand that the township plans to issue $13.4 million of bond anticipation notes in September 2010 for a school project, for which it will be reimbursed 47% by the state. The overall net debt burden should not change substantially as a result of this issue, and we expect debt service to remain manageable.
Congratulations on this accomplishment to the Town of Littleton's finance team, led by Assistant Town Administrator for Finance & Budget Bonnie Holston.
Thanks go, as well, to the Finance Committee and Board of Selectmen for their leadership; and to all of the Town's departments whose efforts have enabled the Town to receive this ratings increase, even during very difficult economic times.
Keith A. Bergman, Town Administrator