Village Saves Taxpayers $572,000 in Interest Costs Through Bond Refinancing
Moody's Reaffirms Aa1 Bond Rating
The Village of Barrington is pleased to announce that on December 6, 2017, it successfully priced $8.289 million in General Obligation (Alternate Revenue Source) Refunding Bonds (previously issued in 2009) at a more favorable interest rate that will save Village taxpayers an estimated $572,405 in interest (5.991% net present value benefit) over the life of the bonds. Read the Daily Herald article here.
In addition, Moody’s Investors Service announced on November 28, 2017 that it had reaffirmed the Village’s Aa1 bond rating. According to Moody’s, the Aa1 rating was based on credit strengths that included a suburban tax base with high income and wealth, a strong fund balance and liquidity, and a low debt burden.
Moody’s based its bond rating support on a number of factors, including the strength of the Village’s tax base. Its report noted growth of a cumulative 13% over the last two years to its current $1.8 billion base. In addition, the Moody’s report indicated that the Village’s financial profile is also a significant credit strength, due to its strong fund balance of $9.9 million in the Village’s operating funds, equal to 55.4% of annual operating revenue.Village officials anticipate ending 2017 with a general fund surplus of an estimated $1.3 million, most of which will be transferred to the capital improvement fund for future capital needs.