According to Standard & Poor’s (S&P) analysis, the City of Berwyn has increased its credit quality rating from A- to A in a credit environment in which only 30% of Illinois government agencies are being upgraded.
Led by Mayor Robert J. Lovero, the City of Berwyn’s financial delegation recently presented in front of credit rating agency S&P for the upcoming issuance of series 2013A (exempt) and series 2013B (taxable) bonds. The series 2013A and B bonds are secured by City's full faith and credit. The City will use series 2013A bond proceeds to refund certain obligations to restructure debt and series 2013B bond proceeds to fund a portion of the unfunded liability of the police and the firefighters' pension fund. S&P determined that the City has undertaken the necessary financial steps to obtain an upgrade of credit quality.
S&P cited the City’s accomplishments in economic development and strict financial oversight as a noteworthy reason to justify the credit quality increase. "The rating reflects Berwyn's very strong budgetary flexibility and liquidity," said Standard & Poor's credit analyst Blake Yocom. Berwyn’s budget strategy resulted in the City raising cash reserves to 12.8% of general fund expenditures. “Under past administrations, the City did not have general fund reserves for emergency purposes. This lack of emergency funding created extreme pressure and budgetary risk to the City. Since taking office, I’ve worked extremely hard with the City Council to increase these reserves as a matter of fiscal stability,” said Mayor Lovero. Berwyn’s credit upgrade will allow the City of Berwyn to achieve lower interest costs, thereby saving taxpayer dollars, than were previously achievable under its prior rating.
