The Village of Schaumburg is pleased to announce that the financial services firm S&P Global Ratings (S&P) has reaffirmed the village’s AAA bond rating, which is the highest rating a municipality can obtain.
The rating is a result of the village’s preemptive actions to stabilize the budget through the COVID-19 pandemic, which were largely successful and allowed for maintaining consistent reserves and liquidity. Previously, S&P changed the rating outlook to negative due to the impact of the pandemic on economically sensitive tax revenue. However, due to strong financial flexibility and a stabilizing local economy, the rating outlook was changed from negative to stable.
At the onset of the pandemic, the village immediately took action to reduce expenditures by more than $23 million and has continued to closely monitor its budget while the economy has gradually stabilized.
The village received $4.9 million in federal stimulus funds from the American Rescue Plan Act (ARPA) to offset recovering revenue with an additional $4.9 million expected to be received next year. The first portion of ARPA funds is being used for a variety of infrastructure improvements and public services, including residential street repair, water and sewer improvements, and financial assistance for residents and others.
S&P also cited proactive management of many aspects of Schaumburg’s budget in the face of health and safety social risks associated with the pandemic. Additionally, positive financial operations, a very weak debt burden and strong reserve levels and liquidity were identified as reasons for the high credit rating.
Given the uncertain and ever-changing economic conditions, the village’s fiscal position is consistently monitored and adjustments to the FY 2021/22 budget will be made to ensure the village continues to practice sound financial planning and budget management.