HomeMy WebLinkAbout02/29/1996 FC MinutesII
FINANCE CONEVIISSION
Minutes of the Meeting
February 29, 1996
Call to Order
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The meeting was called to order at 7:00 p. m. Those present included Chairman Richard Bachhuber,
Commission Members Joe Etchingham, Vince Grochocinski, Newt Hallman, John Korn, Jim
Morrison and Ann Smilanic. Also present were Finance Director David Jepson, and Assistant
Finance Director Carol Widmer. Commission members John Engel and Tom Pekras were absent.
Chairman Richard Bachhuber introduced John Korn to the members of the Finance Commission.
Mr. Korn has been appointed to take the place of Frank Wolfinger who resigned last month.
Review of Village Credit Rating Presentation
Mr. Jepson informed the members of the Finance Commission that the Village is planning to sell
$3,150,000 in general obligation bonds in March. The bonds will be used to finance $1.7 million
of flood control projects, downtown redevelopment projects of $750,000 and other capital projects
of $700,000. The rate of interest the Village pays when bonds are issued depends upon the
Village's credit rating. For the past 23 years the Village has held an Aa rating from Moody's
Investors Service. It has been five years since the Village has formally requested a review of its
credit rating and the Village's economic development activity has improved considerably during that
time. The new U. S. Robotics plant, Clocktower Condominiums and other initiatives led Village
officials to believe Moody's might consider improving the Village's credit rating at this time.
Mr. Jepson distributed a copy of the Standard and Poor's rating definitions which are similar to the
scale used by Moody's. In order to determine the rating the Village will receive, Moody's will
review the amount of outstanding debt and how the debt is managed by the Village. They will also
examine the economic factors within the community such as per capita income, housing stock, fund
balances, and observable trends within the community. All of these factors will be taken into
consideration when assigning a rating. This rating will represent Moody's opinion as to the
Village's ability to repay its bonds.
In order to assist Moody's in their evaluation of the Village, a booklet was prepared and a formal
presentation was made at their New York headquarters by Village Manager Michael Janonis,
Community Development Director Bill Cooney and David Jepson. The presentation book consisted
of five sections. The first section contained a letter of introduction with an overview of the Village.
A profile of the community made up the next section. This profile emphasized the professional
level of administration, the low per -capita cost of the Village services, Village achievements such
as awards received by various departments, proactive strategies undertaken to address social issues
such as the Visions Group, and the student resource officer initiative, intergovernmental
cooperatives, and investment in Village buildings and infrastructure.
The next section of the presentation focused on community resources such as outstanding schools,
attractive housing stock, and the progressive economic development program. The next section
addressed the Village's debt management policies, current outstanding debt and the resources
available to finance that debt. The relative speed with which the Village is repaying its outstanding
debt was highlighted. The final section gave a comprehensive overview of the Village's financial
strength. Fund balances, the diversified revenue base, and funding of the Village's pension
obligations were some of the items covered in this section.
Mr. Jepson responded to general questions regarding debt issues and the Village's revenue base.
IV Adiournmgnt
The meeting was adjourned at 9:05 p.m.
Respectfully submitted
Carol L. Widmer, Assistant Finance Director
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