April 1, 2011

Moody's Strong Credit rating of Vernon Connecticut AA2

This week Moody's issued its credit rating of the Town of Vernon which was is strong at AA2. As a result of the strength of the credit rating, our first since last years re-calibration, the Town has strong market access which yielded low interest rates on this weeks municipal debt issues.

As a result 6 investors bid on the Town's muni bond issue this week. The muni bond interest rates came in at 3.15%. That was lower than the last issue. Which reduces the debt repayment schedule estimated in the Mayor's proposed budget.

Vernon also issues notes, 6 investors bids on the Towns bond anticipation notes. The Town's note rating was MIG1 the highest note rating. The interest rate on the notes was 0.522%. The was lowest than our last issue.

Taxpayer in Vernon will have another $54,000 reduction 2011-2012 debt budget tomorrow at the budget hearings.

Moody's indicated that Vernon's credit rating was based upon our conservative financial practices, our taxpayers willingness to pay due to the last three successfully passed budgets, our ability to pay due to solid collection rate, that we trend well with no budgetary gimmicks and the strength of the pension and funding of the pension.

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Location:14 Park Place, Vernon, CT 06066

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