The Village of Algonquin, IL
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Algonquin’s AAA Bond Rating Affirmed
The Village of Algonquin is proud to announce that it has received a AAA bond rating from Standard and Poor’s Global Ratings (S&P) for its series 2024 general obligation (GO) bonds. This top-tier rating underscores Algonquin's exceptional financial management, robust economic stability, and commitment to fiscal responsibility.
The AAA rating reflects S&P Global Ratings' confidence in Algonquin's seasoned management team, stable finances, and strategic long-term planning. According to the report, the village’s financial health is bolstered by a strong local economy, diverse revenue streams, and proactive management of pension liabilities.
"We are thrilled to achieve the highest possible bond rating," said Village President Debby Sosine. "This rating is made possible by our diligent financial planning and management. Most importantly, it means significant savings for our taxpayers. A higher bond rating allows us to secure lower interest rates on our debt, which reduces the cost of borrowing for important capital projects."
The S&P report highlighted several key factors contributing to the AAA rating, including:
- Strong Economic Growth: Ongoing development, including several new single-family home subdivisions, industrial expansion in the Algonquin Corporate Campus, and growth in retail and restaurant establishments.
- Financial Stability: Consistent budget surpluses and a robust reserve policy, with reserves well above the Village's 25% fund balance policy minimum.
- Prudent Debt Management: Low net direct debt levels and a strategic approach to funding capital projects, primarily on a pay-as-you-go basis.
By achieving and maintaining a AAA rating, Algonquin can continue to fund essential infrastructure and community projects at a lower cost, directly benefiting residents. "Our commitment to financial excellence ensures that we can invest in our community's future while being mindful of our taxpayers' hard-earned money," added President Sosine.
The AAA rating reflects Algonquin's current financial strength and positions the village for continued prosperity and resilience in the face of economic challenges.
For more information about the Village of Algonquin’s finances and to view the S&P report, please visit www.algonquin.org/finance.
Associated Documents
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