ELECTION 2011, THE ISSUES: The Bond Rating

Three months ago, Mayor Scott Jackson and other town officials traveled to New York City with the task of selling the town to the credit rating agencies. 

A short time later, those agencies responded, and the news wasn't good. The town's credit rating , and its outlook ."

But despite those actions, the town then successfully sold $60 million in bonds, refinancing old debts and getting new money for capital projects.

The same time they were there, so too were Virginia state officials, Jackson said. 

"Virginia pulled out," he said. "Hamden stayed in and got a 3.6 percent interest rate, which is tremendous."

The bond rating was one topic of discussion at the recent Hamden Chamber of Commerce mayoral debate between Jackson, the Democratic incumbent, Republican candidate Matthew Corcoran and Independent candidate Charles Baltayan.

"You have to have the willingness to sit at the table and talk to these folks for four hours, and they believe you or they don't believe you," Jackson said. "But it continues to be the case that municipalities don't default on debt -- companies do, individuals do but municipalities don't.

"We did very well despite everything," he said.

Regardless, the fact that the town's rating was downgraded can't be dismissed, Corcoran said.

"The downgrade is significant," he said, "especially when you are looking at possibly borrowing in the future -- it's problematic, and quite significant in its effect and what it says about the town."

"It indicates the town is going in the wrong direction," Baltayan said. "Our debt service is very high and our taxes are very high, and I'm happy we aren't able to borrow as easily now because maybe then we won't, but I worry if we need to for Hamden's safety."

The town is spending too much money too quickly, Baltayan said. "We are spending and spending and not taking in money like we used to, and we need to tighten our belts and that hasn't been happening."

Not true, Jackson said. Hamden's debt per capita is lower than surrounding communities such as Cheshire, Bethany and Woodbridge, he said.

"Our debt load is extremely low," Jackson said, "so low it is unheard of in the state. We are exceptionally low in debt.

"We don't have a debt issue," he said. "We have "

"A low debt load is something to strive for," Corcoran said, "but it is very important to have the proper bond rating when competing with other communities."

Still, the town shouldn't be rushing into taking on more debt, Baltayan said.

"The tax base is shrinking," he said, "and we shouldn't be incurring new debt."