Above / The City of Naperville Municipal Center is located at 400 S. Eagle Street. A growing economy and low debt are cited in the updated rating reports released by the City on April 22, 2024. (PN Photo, April 21, 2024)
The City of Naperville has announced that it has once again been awarded the highest bond rating available on the City’s General Obligation bonds by both Standard & Poor’s Rating Services (S&P) and Moody’s Investors Service.
Naperville is proud to have received the ‘AAA’ rating from S&P and ‘Aaa’ rating from Moody’s for nearly 30 years. Both ratings reflect the City’s strong and expanding economy, budgetary flexibility, low debt burden and strong cash reserves.
Specifically mentioned in S&P’s Global Ratings Report was Naperville’s “robust, growing economy that is independently strong” supported by “low debt levels,” providing “consistently stable financial operating results” and “strong management, with above average policies and practices that focus on financial stability.”
While the City has a “relatively high pension obligation burden compared with that of national peers,” S&P noted that the City’s “pension is one of the best funded single-employer plans in the state,” recognizing the City for its active management of police and fire pension obligations. Moody’s Ratings Report cited Naperville’s growing economic base, “supported by significant ongoing residential, commercial and industrial development,” along with “continued growth combined with a diverse array of revenue streams and conservative budgeting.”
Ratings demonstrate overall strength and health
These ratings demonstrate the City’s overall strong financial position and the economic health of the community. They are also a testament to the City Council and City leadership’s commitment to sound fiscal management. As highlighted in the City’s 2024 Annual Operating Budget, years of conservative financial planning, debt reduction, and a focus on reinvestment and rebuilding cash reserves, contributed to the City’s financial stability.
The bond ratings process is important because independent rating agencies measure the City’s financial health. The rating agencies issue a rating based on many factors including development trends, population growth and available cash reserves. A triple-A rating generally means the bond is lower risk, which impacts the cost of borrowing.
The rating reviews were performed in conjunction with a planned $21 million bond issuance in early May, which will be used for water and wastewater infrastructure projects and other initiatives.
The full rating reports are available at www.naperville.il.us/government/city-finances/.
