Finance director reports strong finances, Moody’s AAA rating, and fund balance above policy floor

Matthew Menino, the town finance director, presented Bedford’s Annual Comprehensive Financial Report for fiscal year 2024 at the Aug. 13 meeting, reporting continued fiscal strength highlighted by a Moody’s AAA rating and an increase in net position of roughly $3.9 million.

Menino said Bedford’s net position rose to about $96.1 million, driven largely by investment income and higher sewer‑use fees; the town’s capital-asset investment less related debt totals about $84.5 million. Menino noted that the town’s unassigned general‑fund balance stood at $16.7 million for 2024, an increase of $1.3 million from the prior year and equal to about 14.69% of combined town, school and county appropriations. The town’s fund‑balance policy sets a range of 8%–17%; Menino said the 2024 level is slightly below the 17% target the policy associates with two months of operating expenditures but well above the minimum.

Moody’s assigned Bedford an AAA rating on June 27 ahead of a July bond sale; Menino said the AAA rating reflects “very strong finances, consistent maintenance of healthy reserves, prudent budget management, and a solid tax base.” The town sold $3.1 million in bonds for a solar project in July at a 2.95% interest rate, Menino said; as a point of comparison he noted the New Hampshire Municipal Bond Bank’s simultaneous 10‑year rate was about 3.44%.

Menino told the council that licensing and permitting revenues were above budget (motor vehicle revenues were cited) and that investment income exceeded expectations due to higher interest rates. Public‑safety wage vacancies and lower health‑insurance costs also produced budgetary savings; Menino said the vacancies have since been filled. He noted the town plans to use about $1.2 million of unassigned fund balance in 2025 to reduce the tax rate, which would lower the unassigned percentage to about 13.3% of appropriations if revenue and expenditure assumptions hold.

Menino said the finance team submitted the 2024 ACFR to the Government Finance Officers Association for the Certificate of Achievement and that Bedford was one of seven New Hampshire governments to receive the award for 2023. He closed by thanking his staff for preparing the report. The council did not take action on the ACFR itself; Menino’s presentation was informational.