Bond rating change to save Plainfield $890,000
Brock A. Stein | 12/12/2014, 11:24 a.m.
Plainfield’s sewer and water bond ratings have been upgraded by ratings agency Moody’s Investors Service, saying the village an estimated $890,000, officials said.
The uptick in ratings to AA2 and AA3 is the third upgrade for the water and sewer divisions in recent years according to a release from the village.
In addition to the immediate savings, the upgrade will give the village better standing for borrowing at more favorable rates in the future.
The village has seen its financial outlook improve in recent months. In 2009 the village faced a deficit of $4.3 million. A 12-year comprehensive plan to reduce and eliminate that debt and has swung the village’s ledger in to the black with its bond rating improving from AA to AA+ in the past four years.
The firmer financial footing means that the village was able to hold property taxes at their 2013 rates for next year. The rate freeze will be absorbed by the village’s corporate account to the tune of $300,000.
Plainfield Mayor Michael Collins said that the latest water and sewer bond ratings upgrades will benefit the village’s bottom line.
“We’re pleased that Moody’s recognizes our hard work. This upgrade will make a difference when we go out for our bond renewal and will result in lower rate increases,” said Collins in a statement.
Contact Brock A. Stein at Brocknewstips@gmail.com or on Twitter at @BrockAStein.