Morrison, IL, City Administrator Barry Dykhuizen shared recent “good grades” earned by the City, for its improved financial status.
“Standard and Poor’s announced this week that they’ve upgraded Morrison’s credit rating two levels. The bonds per the Bond Authorizing Ordinance at Monday’s[, November 28, 2016, Council] meeting will be rated A+. This [improved rating] means the bonds we will issue now will have less risk for investors and lead to more favorable [lower] interest rates. This is the second time in the past two years that S&P has upgraded Morrison’s rating.”
The ratings notification stated, “S&P Global Ratings raised its issuer credit rating (ICR) on Morrison, IL, two notches, to ‘A+’ from ‘A-‘ and the long-term rating on the City’s existing debt certificates to ‘A’ from ‘BBB+.’ At the same time, we assigned our ‘A+’ long-term rating to the City’s series 2016 general obligation (GO) refunding alternative revenue source bonds. The outlook is stable.”
Dykhuizen explained, “In the past, two bonds were issued for the Sports Complex. The City will refinance them at a lower interest rate. They will cost less, due to good fiscal management by the Mayor and Council.”
“S&P likes cities to have reserve funds built up, to temper the effect of broad economic factors. Morrison has held steady in property values and increased them modestly. The City Council has been committed to building and maintaining adequate fund balances, incorporating long range planning, and evaluating financial policies. These practices are putting into place the building blocks of a stable organization. The upgrade from S&P reflects those efforts.”