S&P Global Ratings affirmed its A+ long-term rating on the City of Rochelle’s outstanding general obligation (GO) alternative revenue source bonds, meaning the outlook is stable.
In order to assess a rating, S&P reviews many aspects of the City of Rochelle’s financial picture including our local economy, management procedures, budgetary performance, liquidity and debt positions.
"I am very pleased that we were able to maintain the A+ bond rating from S&P in light of various economic challenges. Our A+ rating reflects our commitment to financial stability through implementation of various fiscal policies and a strong fund balance,” said Finance Director Chris Cardott.
S&P Global Ratings considered the City’s management as strong with good financial policies and practices. The most noteworthy practices and policies include realistic and well-grounded assumptions when setting the annual budget; monthly budget-to-actual monitoring reports to City Council; five-year capital plan; formal investment management police and a fund balance policy.
The City faces several budgetary challenges with large pension obligations and the community’s overall weak economy.
Overall, the S&P’s stable outlook reflects the expectation that the rating will not change in the next two years because the City will maintain at least balanced operations and sustain a strong general fund balance in accordance with the fund balance policy in place.