It Takes a Healthy Village

Moody’s Investors Service has upgraded by one notch to Aa2 its rating on Mettawa’s general obligation debt due to the village’s healthy financial position. The action comes ahead of a planned sale this week of $1.9 million of bonds.

The village, located northwest of Chicago in a primarily rural and residential area in Lake County, benefits from revenue-raising flexibility that comes with its home-rule status, and ample reserves. Its challenges include a limited tax base.

 The tax base has experienced 14.3% average annual growth in full value from 2004 to 2009. Despite a 4.1% decline in 2010 to $379 million, the village’s limited tax base size is somewhat offset by very strong per-capita wealth levels.

“The village’s financial operations are expected to remain healthy due to the affluent nature of its residential tax base, the financial flexibility afforded by the village’s home rule status and an increase in significant sales tax revenue sources,” Moody’s analysts wrote.

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Illinois
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