The City of Naperville is proud to announce that it has once again been awarded the highest bond rating available on the City’s General Obligation bonds by both Standard & Poor’s Ratings Services (S&P) and Moody’s Investors Service.
Naperville is proud to have received the ‘AAA’ rating by S&P consistently for every debt offering for more than two decades. The City has also held the ‘Aaa’ rating issued by Moody’s over the same 22-year period. Both the S&P’s and Moody’s ratings are reflective of the City’s very strong economy, very strong budgetary flexibility, availability of funds and strong debt position, with over 81 percent of Naperville’s debt scheduled to be retired in the next 10 years.
Specifically noted in S&P’s report were the “very strong” management practices of the City, especially its strong financial policies and practices. Moody’s cited the City’s large and diverse tax base and affluent residential base as justification for its rating. It also noted that the City’s tax base declined a cumulative 17 percent between 2001 and 2014 but has since recovered to 99 percent of its pre-recession peak.
“Our continued AAA bond rating is reason to celebrate, but it is also a time to recommit to our fiscal responsibilities,” Mayor Steve Chirico said. “We must continue to proactively address financial issues that touch many suburban municipalities, including ours, and we will rely on our financial principles as guideposts in these decisions. Our City Council is committed to crafting policies that provide high quality services to the community while being mindful of taxpayers’ contributions.”
The rating reviews were performed in conjunction with a planned $8 million bond issuance later this month, which will be used for capital projects such road and bridge work and other initiatives. The full ratings reports can be viewed at www.naperville.il.us/government/city-finances.