Managing Our Debt
2012 Annual Town Meeting Debt Presentation.
R. Hill Committee on Finance and Taxation
Total Town Debt
(As of Jan 1st, 2012)
$34,230,496.
Source: Treasurer/Collector, Town of Stoughton
Unfunded Borrowing Authorizations
Authorized and Unissued Debt
(Potential Additional Debt Liability)
$21,506,095
(Includes Library Appropriation of $14,000,000)
Source: Statement of Indebtedness; FirstSouthwest, June 30 2011.
Authorized and Unissued Debt a/o June 20, 2011
Debt Budget FY 2013
Breakdown
Departments
Principle
Interest
Total
Town
$1,352,330
$374,750
$1,727,080
School
$1,309,467
$384,272
$1,693,739
Water
$575,033
$225,221
$800,254
Sewer
$398,335
$133,718
$532,053
$64,000
$10,070
$74,070
$9,000
$4,800
$13,800
$3,708,165
$1,132,831
$4,840,996
Ambulance
Cedar Hill
Total
*Source Treasurer/Collector, Town
of Stoughton. Pages 5, 6, 8, & 9 2013 ATM Warrant
Retirement of Debt
FY 2011-2013
Department
Town
School
Water
Sewer
Ambulance
Cedar Hill
MWRA/MWPA Misc.
*Source Treasurer/Collector, Town
2011
2012
2013 (Budgeted)
$1,307,460
$1,305,100
$363,340
$280,100
$59,000
$9,000
$499,081
$1,198,520
$1,242,800
$334,580
$276,100
$49,000
$9,000
$514,191
$1,727,080
$1,693,739
$800,254
$532,053
$74,070
$13,800
NA
$3,823,081
$3,624,191
$3,708,165
of Stoughton.
Sources and Funding
ATM Articles - Funding Sources
Recap
All Articles Requested
FINCOM Approved
Funding Sources Fincom Approved Articles
$
$
14,164,688.00
6,330,538.00
Article Appropriation
General Obligation (GO) Borrowing
Enterprise Fund Borrowing
Cash
CPA Funded
Total Approved
$
$
$
$
$
2,470,000.00
2,545,000.00
940,538.00
375,000.00
6,330,538.00
Net Borrowing = General Obligation
Borrowing + Enterprise Fund
Borrowing Less Reimbursements
$
3,124,500.00
Reimbursements
Betterments - Sewer Enterprise
Loan Repayment - Sewer Enterprise
MSBA Feasibility Study - Schools
MSBA Windows - Schools
Total Reimbursements
Funding Net of
Reimbursements
Reimbursements
$
$
$
$
$
990,500.00
900,000.00
1,890,500.00
$
$
$
$
$
1,479,500.00
1,645,000.00
940,538.00
375,000.00
4,440,038.00
$
$
$
$
$
500,000.00
400,000.00
566,000.00
424,500.00
1,890,500.00
How Long to Pay Off Our Debt If No Additional
Borrowing?
Formula: Total Debt/Pay down Rate = Number Of Years
$34,290,496/*3,708,165 = 9.24 Years
*Pay down Rate Based on 2013 Budgeted Principle Payments
Town Of Stoughton Bond Rating
Moody’s Investors Service
Stoughton Bond Rating
Aa2
Legend: “Obligations rated Aa are judged to be
of high quality and are subject to very low credit
risk”.
Source: Moody’s Rating Symbols & Definitions, June 2009. Moody’s Investors Service
Moody’s Rating Criteria
I. Economic Strength
II Financial Strength
III. Management &
Governance
IV. Debt Profile
Source: Moody's Rating Methodology. General Obligation Bonds Issued by Local U.S.
Governments. October 2009
Moody’s Comment
“Moody's believes that the town's 1.2% overall debt
burden will remain manageable given rapid
amortization of principal (87% repaid within 10 years)
and limited long-term borrowing plans”.
Source: Moody's Rating Methodology. General Obligation Bonds Issued by Local U.S.
Governments. October 2009
“What Can Make Ratings Go Up”
-Maintaining
structural balance and
increase reserves
-Increase in tax base, assessed
valuation or demographic profile
Source: Moody’s Global Credit Research, Town of Stoughton-02-May 2011
“What Can Make Ratings Go Down”
-Decrease in reserves
-Inability to maintain structural
balance
Source: Moody’s Global Credit Research, Town of Stoughton-02-May 2011
Strategy
Goal:
-Maintain or Reduce The Town’s Debt Burden
While Maintaining Town Services and Assets
Some Objectives:
-Maintain Borrowing at or Below Pay Down Rate
-Maintain Borrowing Cap @ 3-5% of Revenues
-Grow Revenue
The End
2012 Annual Town Meeting Debt Presentation.
R. Hill – Committee on Finance and Taxation