Avon,Connecticut GO Bnds Rtd AAA by S&P;Outlk Stable.

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/9/98 - Standard & Poor's today assigned its triple-'A' rating to Avon, Conn.'s G.O. bonds dated July 15, 1998 due Jan. 15, 2013. The bonds are scheduled to sell July 1, 1998.

The rating reflects: -- An affluent residential tax base supported by an expanding commercial and industrial presence; -- Well above-average wealth and income levels and housing values; -- Consistently strong financial operations; -- An easily manageable debt position. Avon is a wealthy residential community located in Hartford County 10 miles west of Hartford, with some industrial and commercial presence. Population growth and increased economic activity in the greater Hartford area have transformed the town over the years from a rural to a predominantly residential suburb. Tax base development has been spurred by new high end housing construction, with the values of new homes ranging from $400,000-$800,000. Residents are primarily executive and managerial professionals employed in the greater Hartford area. Wealth levels are very high and have grown at a healthy pace. The town has the ninth-highest per capita income in the state, which has the highest per capita income in the nation. Median household income levels in 1996 were 161% of state and 225% of national levels. The 1997 full value per capita was also high at $149,000.

Financial operations are strong, with ample fund balances and good liquidity. Over the past five years, general fund balances have remained between 6%-10% of expenditures, providing an ample cushion  for contingencies. For the current fiscal year, the town anticipates a $500,000 surplus, which will increase the general fund balance to $3.855 million, or 11.2% of expenditures. Property taxes are the primary source of revenue, accounting for nearly 90% of operating revenues. Collection rates historically have exceeded 98%.

The town's debt position is strong. Net debt is 1.2% of valuation and $1,805 per capita. Debt retirement is above average, with 45% of debt retired in five years and 78% in 10 years. Proceeds of this sale will be used primarily for high school renovations, of which 26% will be reimbursed by the state. Currently there are no future borrowing plans, as the town finances most of its capital needs from internally generated resources.

OUTLOOK: STABLE The outlook reflects Standard & Poor's expectation that the town will maintain its strong financial management practices, continued tax base development, and modest debt position. -- CreditWire

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