CHICAGO – Approval of tax measures on local ballots in Illinois' primary election represents a credit positive for the five local governments that won over voters, Moody's Investors Service says.
Five of eight measures proposed by local governments rated by Moody's gained approval to either increase or extend tax levies on the March 15 ballot.
"The results are credit positive for the local units that received approval for a tax increase or extension because it will allow them to close budget gaps and/or address facility needs," Moody's said in its weekly outlook published Friday.
The positive impact is especially acute for Roselle-DuPage County School District 12 which is rated A2 with a negative outlook, and Reavis-Cook County High School District 220, which is rated Aa3 with a negative outlook, as they have struggled with operating deficits.
Voters agreed to override state imposed property tax caps for non-home rule communities. The Roselle district will see a $1.5 million boost and Reavis a $2.3 million benefit. "The revenue boost is expected to help stabilize the financial operations of the districts," Moody's analysts wrote.
Waterloo-Monroe County Community Unit School District No. 5, rated Aa3, and Staunton-Macoupin & Madison County Community Unit School District No. 6, rated A1 with a negative outlook, won approval for a 1% tax increase in their school facility sales tax. It will raise $1.2 million for Waterloo and $250,000 for Staunton.
"The districts will use the additional funds for capital expenses, which will alleviate spending pressure on operating funds and allow them to address some deferred maintenance without issuing debt," Moody's said.
Rockford voters endorsed the renewal of a 1% sales tax through 2022 for public infrastructure projects. The city is rated A1. The tax raises $15.6 million annually.
Voters in Peotone-Will & Kankakee Counties Community Unit School District No. 207-U and Mt. Vernon-Jefferson County School District No. 80 rejected tax questions. Both are rated A1. Voters in Fox Lake, rated Aa3 rejected a 1% sales tax for capital projects.
