Moody’s Investors Service last week downgraded Antioch’s $1.5 million of general obligation debt to Baa1 from A3 as the village saw a drop in its general fund balance in 2008 to 4.2% from 18.9% in fiscal 2004.
The downgrade was also due to the expectation that the village’s moderately sized $1.2 billion tax base in the northern portion of Lake County will likely experience a slowdown in growth due to the current economic environment and softening of the real estate market. Antioch is located far north of Chicago at the Wisconsin border.
“Moody’s believes the village’s financial position has deteriorated over the last several years, evident in operating deficits in three of the last four years. Fiscal 2008 ended with a $282,000 operating deficit, resulting in total general fund balance of $442,000,” analysts wrote.
The balance is expected to decrease to $266,000, or a narrow 2.5% of revenues in fiscal 2009. Analysts viewed as positive the village’s move not to use its fund balance in its fiscal 2010 budget.
