Standard & Poor's this week upgraded Shorewood Hills to AA-minus from A-plus in recognition of its efforts to build its general fund balance despite being under levy limitations for the past two fiscal years.
The review was conducted in conjunction with Shorewood Hills' planned issue of $2.6 million of revenue anticipation notes.
"We expect that the village will be able to maintain its fund balance at a solid level for a continuous period of time and that the tax base will grow steadily and benefit from its location adjacent to Madison," analyst Scott Garrigan wrote.
Following historically thin general fund reserve levels, the village produced surpluses in both 2005 and 2006 that were on an average 26% of expenditures. Proceeds of the note issue will finance the village's capital needs through 2008.
