The city of Elgin received a AAA bond rating from Fitch Ratings, confirming the city’s history of strong fiscal management. This announcement marks the fifth consecutive year of a AAA bond rating from Fitch, the rating agency’s top rating.

The Elgin City Council approved a $25 million general obligation bond issuance to fund street and utility improvements in 2016. The bonds will be sold through a competitive sale on Feb. 10, 2016.

According to Fitch, Elgin’s rating was based on the city’s strong financial management, diversified revenue streams, modest debt burden, stabilized property values and benefit changes aimed at improving the city’s pension funding levels.

“Credit ratings are the only objective, fact-based criteria in local government that provide feedback- not only in how the city manages its finances – but on the quality of the underlying policy decisions made by the city council,” said Elgin City Manager Sean Stegall. “We are especially pleased that we received this ranking from Fitch as it is the gold standard for municipal credit ratings.”

Fitch Ratings is one of three nationally recognized statistical rating organizations (NRSRO) approved by the U.S. Securities and Exchange Commission. Fitch’s credit rating scales range from AAA to BBB for municipalities found to be of relatively low to moderate credit risk; and BB to D for those that signal a higher level of credit risk or default.

Elgin’s AAA bond rating from Fitch Rating continue to serve as distinguishing factors in the city’s efforts to both retain and attract regional, national and international businesses. The stability and consistency the city’s financial rating represent is the strongest signal of assurance the city can issue to the business community that their investments in Elgin are being made in a sound economic environment.

The AAA rating was also affirmed for the city’s $74.85 million in general obligation bonds and $5 million in revenue bonds, recognizing the city’s stable outlook. Of the two types of bonds issued to municipalities, general obligation bonds are issued based on the belief in the municipality’s ability to repay its debt according to its credit and taxing power. Revenue bonds are backed by a specific income source of the issuer, in Elgin’s case, the Illinois Finance Authority (IFA).

SOURCE: city of Elgin news release

About the City of Elgin, IL

Located 35 miles northwest of Chicago and home to more than 108,000 people, Elgin is an award-winning All American City and one of the fastest-growing communities in Kane County. “The City in the Suburbs” offers exceptional opportunities that include cultural arts, entertainment and recreation. For more information, visit the city’s website or connect on Facebook, Twitter (@ElginIL), Instagram, LinkeIn, YouTube and Pinterist.