Story posted Thursday, November 5, 2009
Park District Finances In Good Shape
The Buffalo Grove Park District received the highest municipal bond rating of "AAA" from Standard and Poor's (S&P), an independent rating agency in New York.
Bond ratings are utilized by investors who purchase municipal bonds and measure the district's ability to repay debt. The higher the rating, the lower the interest rate the district will pay on bonds and loans.
After reviewing the district's financial condition, management policies and various economic data, S&P believed the district deserved the highest rating. The rating was requested in conjunction with the district's annual bond issuance.
Rating factors that came into play were that the district has strong reserve levels coupled with good financial management practices, as well as a low overall net burden, with rapid amortization.
Tom Chapman of Raymond James, the district's bond consulting firm said, "S&P expects that the district will maintain its very strong financial position with the help of its good management practices."
Buffalo Grove was the only Illinois park district rated "AAA" by S&P. Other Illinois park districts rated "AAA" by another rating agency are the Northbrook Park District and the Park District of Highland Park.
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