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2023/12/18 - Mayor's Column: Bond Rating

­“AN OPEN DOOR TO O’FALLON”
A WEEKLY NOTE FROM MAYOR HERB ROACH
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Let me start by wishing everyone a very merry and bright Christmas. I hope that you will have the opportunity to enjoy the Christmas Holidays with your family and loved ones, as we will.

I thought that I would share a Christmas Present that the city received.  Standard and Poor’s Rating Service has given O’Fallon an AA+ financial rating.  Your City of O’Fallon received the HIGHEST rating of any city located from Interstate 80 south or in the lower 80% of the state of Illinois.  That includes such cities as Decatur, Springfield and Quincy. No other city in the lower 80% of the State has received an AA+ financial rating from S&P.

Here are some of the comments S&P made in their assessment:     

  • This rating reflects O’Fallon’s careful budgetary management that results in extremely high reserves, which we view as positive.
  • Revenue associated with recent commercial development and activity in O’Fallon further contributes to its positive fiscal 2023 operating results.
  • We have examined bond documents and found no acceleration provisions that could introduce liquidity risk.
  • We expect the growing local economy to likely continue as residential and commercial permit trends remain strong. 
  • The city currently plans to use approximately $5.4 million in reserves within the next two years to support an enhancement program to the 100-year-old Community Park but we think reserves will remain very strong.
  • Expectations that the proactive management will likely maintain balanced operations and very strong reserves.
  • Strong management with good financial-management policies and practices under our Financial Management Assessment methodology, an improvement from our previous standard FMA-reflecting city management’s efforts to formalize policies, including fund balance policy, and incorporate long term capital planning in its budgeting efforts, and a strong institutional Framework.

As residents of O’Fallon, you should always be able to reach out to your elected officials and ask questions about what is happening in O’Fallon. Having open communications is important to me and something I care very deeply about. Thank you for reading, and please remember, my door is always open.