A primary focus of the Granby Board of Finance is to protect and strengthen, where reasonable, the town’s short and long-term financial position.
Over the past 30 years, Granby has steadily done so as reflected in the steady increase in its credit ranking while building and improving its asset base. These things don’t happen on their own. They reflect a strong commitment by the selectmen and education boards, the steady leadership by the financial board and the continued support of the voters and taxpayers.
As Granby’s credit rating improves, projected interest costs on any anticipated bonded debt would decline. That is an important consideration as a town looks over the capital needs it may face. The regimen of long-term planning and fiscal discipline are hallmarks of the town’s long-term fiscal management as we look ahead at operational and infrastructure challenges. We are well prepared to meet the future needs of our community in a reasoned and balanced manner.
The fiscal 2024 year ended on June 30 and showed the General Fund reserve at some 15 percent of that budget. This is within the target zone for maintaining Granby’s current Standard and Poor’s (S&P) credit rating of AA+ for funding small and midsized capital items. It also serves as a funding source each year for already banked dollars that will help carry the cost of the next year’s expenditures, with an eye toward stabilizing the mill rate.
Already netted out of the remaining 15+ percent General Fund reserve are $2.16 million to balance the FY25 budget equation and $2.6 million for funding for the emergency communications project. In addition there is a transfer of $500,000 into the small capital (infrastructure) fund for future use. These plans come from recommended conservative budget practices, healthier tax collections and higher than normal interest rates earned on banked money. It also reflects one-shot revenues such as the center’s apartment building fees and money returned from both the selectmen and education boards.
It also was helpful that, after the budget vote in April, the state bond commission approved $2 million for Granby towards the emergency communications project, meaning only that the $2.6 million had to come from the FY25 budget rather than the full $4.6 million. Our thanks to the Republican legislators who represent Granby, Representative Mark Anderson, Senator John Kissel and Senator Lisa Seminara, for their hard work in making that happen, as well as Democrat Governor Ned Lamont who chairs the bond commission, for signing the approval.
The flip side of this is what may happen in operation and infrastructure segments in the next decade or two. Over the past year, both operating boards have been working on a preliminary forecast of future capital and infrastructure needs. The comprehensive plan contains items that we know the town will need as well as elements that may or not come to fruition. The initial long term forecast seems insurmountable until one realizes that about half of the total is already factored into roadwork, paving, trucks and busses. Over the next decade two existing bond issues are scheduled to be paid off, although additional bonding may be needed for new projects. Continued planning falls to the operating boards and the preparatory fiscal legwork by the finance board, with the final decision falling to the voters as the process unfolds.