Moody's Investors Service said it has downgraded Wilmette Park District, Ill.'s underlying general obligation rating to Aa1 from Aaa and has downgraded the district's general obligation limited tax (GOLT) debt certificates to Aa2 from Aaa.
The Aa1 rating applies to $14.6 million in outstanding general obligation unlimited tax debt and $5 million in parity rated GOLT debt service extension base (DSEB) debt.The Aa2 rating applies to $1.3 million in outstanding debt certificates.
Approximately $14.6 million of outstanding GO rated debt is secured by the district's GOULT pledge, which benefits from a property tax levy that is unlimited by rate or amount. $5 million of outstanding GOLT debt is secured by the district's debt service extension base, with debt service paid from a dedicated property levy that is limited as to amount, but unlimited as to rate.
The district has $1.3 million of outstanding debt certificates that do not benefit from a dedicated levy, with repayment secured by all legally available funds of the district.
The Aa1 rating reflects the district's diminished liquidity and reserve position following a recent draw for capital expenditures, and a new formal fund balance policy that indicates reserves will not be restored to previous levels over the near to medium term.
The rating also incorporates the district's sizeable tax base near Chicago (Baa1 Negative), affluent resident profile, low debt and manageable pension burden. The district's Aa2 GOLT debt certificate rating reflects the lack of a dedicated property tax levy for repayment of debt service and an expectation that the district's liquidity position will remain somewhat limited over the near to medium term.
