Politics & Government

Westfield Maintains AA+ Bond Rating, Outlook Upgraded

In fiscal 2012, town posted the first operating surplus in five years.

Standard & Poor's Ratings Services affirmed the Town of Westfield's AA+ bond rating and revised its outlook from "negative" to "stable" on Westfield's general obligation bond debt, it was announced Thursday.

The revision is based on multiple financial changes that have had positive effects on the town's operations, according to the ratings service.

"In the past year, the town has taken several actions to bolster balance operations and reverse the downward trend in fund balance," S&P's credit profile stated, referring to the sewer fee that increased revenues by $1.7 million annually, as well as increases in other nontax revenues such as construction, parking, and court fees.      

For the current fiscal year, Westfield anticipates receiving one-time benefits related to Superstorm Sandy. By paying for a significant portion of the storm-related cleanup and expenses out of current operations, the town did not rely on emergency financing or bonding, the report stated. Reimbursements from the Federal Emergency Management Agency will be reflected in the town's finances, with management projecting an operating surplus in excess of $2 million for the current fiscal year.

"As the Chair of the Town Council’s Finance Policy Committee, l can attest that Westfield’s strong financial condition is the result of the collective efforts in recent years of the Mayor, the Town Council, the Town Administrator and our Department Heads to address our economic challenges head-on," said First Ward Councilman Sam Della Fera, who is seeking an unopposed second term in November. "I intend to continue to work with Mayor Skibitsky, Jim Gildea and my Council colleagues to make the sometimes difficult decisions necessary to keep the Town on a solid financial footing.      

Last year, S&P downgraded Westfield's credit rating from AAA to AA+ based on "the town's deteriorated financial performance."

"The stable outlook reflects our opinion of an affluent town with income and wealth levels that exceed that of similarly rated peers. Although reserves have improved recently, they are still lower than that of similarly rated peers. Given the town's strong response to recent financial pressures, we believe Westfield should be able to promptly address any new challenges. We do not expect to revise the outlook in the next two years. However, the rating could be pressured downward if the town's financial performance weakens. While we do not see any upward potential for the rating in the same time frame, we would consider an upgrade if there is a sustained improvement in financial performance," the report concluded. 


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