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Managing Our Debt

Managing Our Debt. Total Town Debt ( As of Jan 1 st , 2012) $34,230,496. Source: Treasurer/Collector, Town of Stoughton. Unfunded Borrowing Authorizations.

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Managing Our Debt

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  1. Managing Our Debt 2012 Annual Town Meeting Debt Presentation. R. Hill Committee on Finance and Taxation

  2. Total Town Debt (As of Jan 1st, 2012)$34,230,496.Source: Treasurer/Collector, Town of Stoughton

  3. 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

  4. Debt Budget FY 2013Breakdown

  5. Retirement of Debt FY 2011-2013

  6. Sources and Funding

  7. 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

  8. Town Of Stoughton Bond Rating Moody’s Investors ServiceStoughton Bond Rating Aa2Legend: “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

  9. Moody’s Rating Criteria Source: Moody's Rating Methodology. General Obligation Bonds Issued by Local U.S. Governments. October 2009

  10. 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

  11. “What Can Make Ratings Go Up” -Maintaining structural balance and increase reserves -Increase in tax base, assessed valuation or demographic profileSource: Moody’s Global Credit Research, Town of Stoughton-02-May 2011

  12. “What Can Make Ratings Go Down” -Decrease in reserves -Inability to maintain structural balanceSource: Moody’s Global Credit Research, Town of Stoughton-02-May 2011

  13. Strategy Goal:-Maintain or Reduce The Town’s Debt Burden While Maintaining Town Services and AssetsSome Objectives:-Maintain Borrowing at or Below Pay Down Rate-Maintain Borrowing Cap @ 3-5% of Revenues-Grow Revenue

  14. The End 2012 Annual Town Meeting Debt Presentation. R. Hill – Committee on Finance and Taxation

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