Moody’s Investors Service assigned an Aaa to the Park District of Highland Park, IL’s $19.7 million General Obligation (Limited Tax) Debt Certificates, Series 2021. Moody’s maintains the Aaa issuer rating and Aaa general obligation limited tax (GOLT) rating on the district’s outstanding bonds. The district’s issuer rating represents Moody’s assessment of the hypothetical debt of the district supported by a general obligation unlimited tax (GOULT) pledge. The district does not currently have any rated debt supported by a GOULT pledge. Following the sale, the district will have $33.4 million in outstanding GOLT debt, all of which is rated by Moody’s.
The district’s Aaa issuer rating reflects its large and affluent tax base, strong financial position that is further bolstered by additional liquidity within its capital projects funds, a moderate debt burden and modest adjusted pension burden.
The absence of a distinction between the rating on the district’s GOLT debt and the issuer rating is based on the nature of the pledge, which is a first budget obligation payable from all available funds.
Moody’s typically does not assign outlooks to local governments with this amount of debt.
FACTORS THAT COULD LEAD TO AN DOWNGRADE
The Series 2021 debt certificates are a general obligation of the district payable from all legally available funds.
USE OF PROCEEDS
The Series 2021 debt certificates will finance refunding and new projects. A portion of the debt certificates will be used to partially refund the Series 2012 and 2013 debt certificates, which originally financed beach improvements, improvements to a tennis facility, park renovations and acquire and maintain park land. The remaining proceeds will finance various capital projects, including reconstruction of a recreation center and improvements to a boat launch
and dog beach.
Located about 26 miles north of the City of Chicago (Ba1 stable) in suburban Lake County (Aaa), the Park District of Highland Park continues to benefit from its favorable location on the North Shore of Lake Michigan. The district encompasses the City of Highland Park (Aaa stable) and a small portion of the Village of Deerfield (Aaa stable). The district serves a population of roughly 30,000.
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