Another bond rating agency has expressed optimism for Hamden’s financial future — and provided some tips on how to stay on that upward path moving forward.
The agency, Moody’s, has followed Fitch in upping Hamden’s fiscal outlook from negative to stable. It stated so in this press release on July 28.
“The stable outlook reflects improved financial operations in fiscal 2021 and anticipates that the fairly new administration will maintain disciplined budget management, producing moderately improved cash reserves and lower reliance on one-time budget fixes,” that release says.
They credit Garrett’s controversial 3‑mill increase on property taxes — as well as her administration’s focus on filling up cash reserves — as key tactics in boosting Hamden’s income while saving for rainy days.
Like Fitch, they also complimented Garrett’s move to sell certain town assets and refinance debt.
While Hamden’s long-term liabilities remain high, the report notes that a number of developers are looking to produce more housing within the “town’s competitive residential market,” which could further expand Hamden’s tax base.
In addition to continuing to grow their fund balance and cash reserves, Moody’s said Hamden must avoid operating deficits going forward — a common problem with past administrations — and focus on paying their debt service off.
Garrett commented on that news Thursday: “Two ratings agencies now see the positive steps we have made in stabilizing our finances. While there is more progress to be made, this is an important turning point.”
Nora Grace-Flood’s reporting is supported in part by a grant from Report for America.