A Chicago-based government review group last week endorsed DuPage County’s proposed $459 million fiscal 2011 budget, but urged the top-rated county to improve its long-term financial planning to prepare for future issues.
The Civic Federation of Chicago praised the county for cutting costs by 3% while maintaining core services.
The Chicago-area county expects some revenue collections to remain lackluster in 2011. It plans to freeze salaries and cut staff by 1.6%, and is seeking a $250,000 property tax increase. The county still expects personnel costs to rise by 10% because of health insurance and pensions.
“DuPage County is doing many financial things right, such as maintaining adequate reserve funds,” said federation president Laurence Msall. “However, if the county is to continue to minimize the burden it places on taxpayers, it must develop long-term plans to counteract worrying financial trends.”
Rating agencies recently affirmed DuPage’s top ratings ahead of its sale last week of $66 million of general obligation Build America Bonds and recovery zone economic development bonds, senior managed by Wells Fargo Securities. The county has $250.4 million of GO debt.
Proceeds will finance capital projects.
“The economic strength of the area is reflected in unemployment rates, which have historically tracked below the state and nation, with major employers and taxpayers well-diversified,” Moody’s Investors Service wrote. General fund reserve has remained at more than 25% of revenue for the last six years.
The credit is supported by sound financial performance coupled with ample general fund balances, abundant employment opportunities in a deep and diverse local economy, and a manageable debt burden, according to Fitch Ratings.
