Officials in Smyrna are celebrating some good financial news for the town.
A state audit last year found several problems in how the town managed its finances, including how it tracked spending. Also in recent years, a series of postponed audits led to a massive budget shortfall, which prompted council members to double property taxes.
But at a Town Council meeting, Town Manager Torrie James had good news for council members - the town’s bond rating has dramatically improved this year.
“Our bond rating got reduced down to a D rating for the last year and we were able to get a reassessment done and we were officially given an AA3,” he said.
Moody’s characterizes AA ratings as “high grade.”
In practical terms, James explained, the upgraded rating means the town’s credit is substantially better.
“D is the lowest that it gets, which means your borrowable ability becomes a little tougher,” he said.
If the town’s rating had not increased, that would have a major impact on its budget if it needed to borrow money for future capital projects.
“Right now, with the current bonds that we are paying, we are paying about $3 million a year just in bond payments,” James said. “If we were to get a bond with a D rating, then we probably would be paying that just for that one project to happen.”
As of its 2024 audit, the town had some $31 million in bond financing, primarily for water and sewer and street improvements. Staff work is currently underway on Smyrna’s budget for next year.
