Fitch Rates Trumbull, Connecticut's $8.32MM GO Rfdg Bonds 'AA'.

NEW YORK -- Fitch Ratings assigns an 'AA' rating to Trumbull, CT's approximately $8.32 million general obligation (GO) refunding bonds, issue of 2004. Scheduled for competitive bid on Dec. 14, the bonds mature serially Jan. 15, 2009-2018 with semi-annual interest payments on Jan. 15 and July 15, commencing Jan. 15, 2005. Bond proceeds will advance refund or defease the callable portion of eligible bonds originally issued in 1998 for a net present value savings of approximately 2.75% of the refunded par. Concurrently, Fitch affirms the 'AA' rating on Trumbull's $98.5 million outstanding GO bonds. The Rating Outlook is Stable.

The 'AA' rating is based on the stable economic performance of Trumbull's affluent suburban community, improved financial profile, and above average amortization rates. Other credit factors include the current modest debt burden although debt levels are likely to increase with the development of a comprehensive capital plan incorporating longer-term school needs. While Fitch expects debt levels to remain affordable given the town's substantial wealth, the fixed cost burden on the budget is likely to increase when factoring in the escalating contributions to the town's under-funded pension plans.

Trumbull is a wealthy, chiefly residential, Fairfield County community located north of Bridgeport and equidistant from Hartford and New York City. While many residents commute to New York or to the numerous corporate headquarters facilities in southwestern Connecticut, Trumbull has its own ample employment base made up primarily of health and business services and retail trade. The Trumbull Shopping Park, a regional mall, employs 3,000 with plans for expansion and Oxford Health Plans, the town's largest single employer, provides 1,400 jobs. Employment at NASDAQ, Inc.'s computer operations center nearly tripled over the past decade and further expansions at Unilever, Inc. and NASDAQ should help offset the recent drop in commercial personal property assessments. Additionally, the town is currently implementing a full revaluation of property and expects strong growth given the active housing market. Overall, the net taxable grand list grew by an average of 3.7% per year since fiscal 2001; this gain includes the effects of a 2000 revaluation that boosted property values by 18.8%. Market value per capita is a high $182,286. Per capita income is 124% of Connecticut's high average and 174% of the national average.

The town's financial picture is stable and fiscal 2003 represents the first year the town has met its unreserved fund balance policy goal of 5% of spending. Although reserves are still somewhat below average for the rating category, property tax receipts account for a high 90% of the budget and a strong rate of current collections provides revenue stability. Education is the principal funding obligation of the town, making up 60% of the budget; and is typically the largest claim on new resources. The increased mill rate for the 2005 budget reflects the third consecutive raise supporting the town and board of education budgets' increase of 3.8%; much below the near 8% increase from fiscal 2003 to 2004.

Trumbull's infrastructure is largely in place as a mature community although debt levels are likely to increase with the formulation of a comprehensive capital plan incorporating both town and board of education long-term needs. Debt levels are moderate at $2,681 per capita and 1.5% of market value. The debt service burden on the fiscal 2005 budget is moderate at 7.4% and under the new capital plan should remain affordable given the town's high wealth levels. Amortization is above average at 66% in ten years.