Weston’s Long-term Debt Level Among Highest in Connecticut

Weston’s long-term debt sum of $70 million is among the highest in the state in relation to the size of the community’s population, research shows.

For every resident the town owes $6,877, according to Patch calculations.  The figure is based on recently-published 2010 census data, which puts Weston’s population at 10,179.

The debt-per-resident ratio is an increase on the Connecticut Conference of Municipalities’ most recent research. The 2009 report put Weston’s long-term debt per capita at $6,679, making it then the highest in the state and more than triple the average.

"We are aware that we have a high per-capita debt,’’ said Rick Darling, finance director for the town. "I anticipate that our debt ratio will come down. We feel overall we’re in good shape.’’

Weston saddled itself with long-term obligations over the last decade to fund improvements in the town’s schools, primarily the new , which opened in September 2005, and extensive renovations and additions at .

In the last fiscal year the town issued $5.8 million of new bonds, primarily for improvements in school facilities.

"Between 85 to 90 percent of our outstanding debt is education related,’’ said Darling.

That proportion of the debt reflects the school system's huge slice of the annual town budget. In the last financial year education took $53 million, or 79 percent, of the spend.

The town has made efforts to improve its debt picture. In April 2010, Weston issued bonds worth $44.3 million to pay off earlier commitments and get a better lending rate. The refinancing effort trimmed the debt pile by $2.8 million.

For 2011, the town owes $6.8 million in principal and interest payments on its debt. On the current payment schedule it will pay in excess of $6 million per year through 2020.

Mike O’Brien, chairman of the Board of Finance, said new bonding would be on hold for the next three to four years. Then the town may be able to pay down more of its debt and refinance through new bond issues at better rates.

"We might be able to retire some of the older issues,’’ said O’Brien. "We should see a little bit of a drop on the expenses going forward.’’

Weston’s debt is comfortably within state rules on municipal borrowing. Statutes dictate that the town can only raise bonds that are fully backed by the government to the value of seven times the annual tax revenue. This means the current borrowings are at only 15% of the debt limit of $433 million.

O’Brien said there are no concerns about the town’s ability to pay its obligations.

"We have a pretty sizable grand list,’’ he said, referring to the assessment of taxable property in the town. He also said the town’s general fund was "in excellent shape.’’

Ratings agency Moody’s Investors Service gives the town a AAA bond rating.