The City of St. Charles Receives Aa1 Credit Rating from Moody's Investors Service
Rating Received as Part of General Obligation Bond Issue-
In a report released September 20 by Moody’s Investors Service, a leading provider of credit ratings, research, and risk analysis, the City of St. Charles received an impressive Aa1. The Aa1 rating is the second highest rating offered by the credit rating agency. The city has maintained this notable rating since 2010.
Moody’s conducted an analysis of the city as part of a $9.035 million bond issue that will provide funds for construction of the Red Gate Bridge and the replacement of trees infested by the Emerald Ash Borer. The city also is refinancing $13.215 million of existing debt to take advantage of lower interest rates that will save the city over $125,000 annually.
“This is great news,” said Chris Minick, Director of Finance for the City of St. Charles. “This report provides independent verification that the fiscally conservative policies we have enacted during this recession have worked to maintain a strong financial footing amid difficult economic conditions.”
In the past few years, the city has elected to take advantage of historically low interest rates to borrow funds for capital projects. In doing so, the city confines long-term borrowing to a time period not to exceed the useful life of the equipment or project. This city also has refinanced several prior bond issues, generating $2.85 million in cash flow savings through 2025.
“We are dedicated to using debt wisely,” said Minick. “We are also committed to monitoring the financing environment to take advantage of the interest rate environment and minimize borrowing costs.”
The Moody’s report stated the city's financial operations remain sound following prudent management practices during the economic downturn. Further, the report characterizes the City of St. Charles as having ‘strong financial operations supported by solid reserves despite economically sensitive revenue pressures,’ among its strengths. The city’s 2011 undesignated reserve level in the General Fund was $16.2 million or 41.2% of revenues. This reserve level remained unchanged at the end of fiscal year 2012, reflecting balanced financial operations in the General Fund.
The complete Moody’s report can be found on the city’s website www.stcharlesil.gov. For more information, contact Chris Minick at 630-762-7002.
About the City of St. Charles
Friendly neighborhoods, diverse retailers, international employers, innovative schools, beautiful parks, varied cultural amenities, and unique architecture have earned St. Charles its reputation as the Pride of the Fox. Located in both DuPage and Kane counties, the City of St. Charles is 35 miles west of downtown Chicago, and has a population of approximately 33,000. Over 2,100 businesses, consisting of a balanced mix of retailers, restaurants and manufacturing facilities, employ more than 18,000 people. The City of St. Charles was named the #1 City for Families by Family Circle® magazine in 2011; one of the “150 Great Places in Illinois,” by the AIA Illinois; and one of the “Top 10 Towns To Live In” by West Suburban Living magazine. www.stcharlesil.gov