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Moody’s affirms Aaa bond ratings, GFOA bestows award
BUFFALO GROVE | Moody’s Investor Services recently announced that it has confirmed the Village’s Aaa bond rating for its existing general obligation debt, after placing the municipality on review for possible downgrade in conjunction with its new ratings methodology.
Citing strengths in the diversity of the community’s tax base, solid fiscal management and a favorable debt profile, the agency’s decision underscored the Village’s efforts to maintain a strong balance sheet with a conservative tax policy.
Village President Jeff Braiman lauded the announcement, stating “The Village has always been aggressive in managing debt and other liabilities. The decision by Moody’s recognizes the strength of this community to weather a major economic storm.”
In writing its opinion, Moody’s cited the need for the Village to continue building reserves and diversifying its tax base to maintain its high marks.
The Village has taken extraordinary measures in recent years to eliminate operating deficits including reducing employee counts, renegotiating service and commodity contracts and reorganizing the delivery of services.
More recently, the Village has initiated consolidation of its main customer service areas and launched online services. Village Manager Dane Bragg and Finance Director Scott Anderson prepared and presented the review analysis to Moody’s in March. The review team evaluated operating income and loss, debt profiles, pension liabilities and tax source reliability. Moody’s cited strength in all areas, but for “elevated but manageable pension liabilities.”
According to Anderson, “We continue to work toward rebalancing the expense side of the ledger, with a sharp eye on revenue performance. Thus far, we are making slow but consistent progress in recovering from the 2008-2011 downturn.”
In addition, the Village was recently awarded the Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting for the 2012 Comprehensive Annual Financial Report.
This certificate is awarded as the highest form of recognition in the area of governmental accounting and financial reporting.
Village Manager Dane Bragg praised both accomplishments, saying “Working together, the finance, administration and Village Board teams have achieved great milestones in rebuilding the Village’s finances. We appreciate the commitment of our staff and elected officials and look forward to continued success.”