Standard and Poor's (S & P) Assigns 'AAA' Bond Rating to Village of Buffalo Grove
Strong budgetary flexibility, liquidity and fiscal management were cited as justifications for the top ranking, which was released by S & P on March 3, 2020. Other strengths mentioned included the Village's history of positive financial operations and progress toward building reserves for future capital and operation needs.
“Despite the challenging Illinois environment, the Village has continually maintained superior levels of fiscal management and responsibility, evidenced by receiving the highest ratings from organizations like S & P over the last several years,” said Village Manager Dane Bragg. “This achievement would not be possible without our finance team, executive leadership and the Village Board.”
As part of the Infrastructure Modernization Program, the Village will be issuing bonds in 2020 to assist with funding for various projects. Revenues generated by the water/sewer rate increase and newly established fixed facility fee, along with state and local motor fuel taxes, will fully support debt payments on bonds and will not impact the Village’s portion of property tax bills.
“This strategy will allow the Village to complete projects in a timely manner, which will minimize service disruption for residents and all stakeholders,” Bragg added.
In addition to the S & P rating, the Village also received in 2020 the Certificate in Achievement for Financial Report Award from the Government Finance Officers Association (GFOA). The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting.