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Strong fiscal management, a stable tax base and healthy reserves were cited as reasons for the classifications.
The Village of Buffalo Grove recently received notifications from two major credit rating agencies, both Standard & Poor’s (S & P) and Moody’s, that it has again achieved the highest ratings possible for bonds to be sold in 2016, as well as for its existing debt portfolio.
Moody’s released their Aaa rating on April 8, 2016 for the Village’s $6.28 million General Obligation Corporate Purpose Bonds, Series 2016. S & P also released its AAA rating for the Village on April 13, 2016, and cited strong budgetary flexibility, strong liquidity and low debt as reasons for their classification. Both ratings affirmed previous evaluations of existing general obligation debt totaling $8,825,000.
Among the credit strengths mentioned in the ratings opinions were the Village’s proactive financial management, forward-looking financial projections and progress toward building reserves for future capital and operation needs. A large and diverse tax base located within the Chicago metro area, an affluent residential base and low unemployment levels, as well as flexibility made possible by the Village’s home rule status also were cited.
Including the Series 2016 bonds, the Village’s total general obligation indebtedness will be $15,015,000, representing 16.7 percent of all direct and overlapping bonded debt, or 1.06 percent of equalized assessed value of the community.
“Our goal is to continue to maintain the highest level of fiscal accountability and responsibility while providing excellent services for our residents,” said Village Manager Dane Bragg. “These ongoing financial achievements are indicative of that serious commitment to our stakeholders. We express our sincere appreciation to our Village Board for their continued financial stewardship and to our finance team for their diligence in meeting today’s financial challenges while planning for the community’s long-term sustainability.”
The Village has also been awarded with the Distinguished Budget Presentation Award, Popular Annual Financial Reporting and Excellence in Financial Reporting designations by theGovernment Finance Officers Association. Both credit reporting agencies have given the Village of Buffalo Grove their highest possible ratings since 2009.