The Fox Valley Park District has maintained an AA+ bond rating that will create $3.4 million in savings for taxpayers, according to a news release from the district.
The refunding of existing bonds will lower the interest rate on about $29.5 million in park bonds, the release stated. This will result in reduced future property tax liabilities for residents, according to the release.
Standard and Poor’s has affirmed the AA+ bond rating, the release stated. The district serves Aurora, North Aurora and Montgomery.
The park district decided to refinance its debt and lower future interest payments by 9 percent because of the drop in interest rates in recent years coupled with the strong bond rating, according to the release.
“As stewards of community tax dollars, we are excited to provide these significant savings,” Park District Board President Bob Vaughan stated in the release.
The park district has held the tax levy flat during each of the past four years, according to the release.
Akin to a credit score, a bond rating is enhanced by stable finances and careful monitoring of expenditures. Fox Valley is among the few government agencies in Illinois to carry an AA+ or better rating, and its affirmation comes at a time when many agencies are facing downgrades, the release stated.
Proceeds from the bond sale will be used for the payment of land acquisition for parks, as well as capital park and facility projects involving restoration, construction, maintenance and improvements, according to the release.