City of Elgin well-positioned for bearing COVID-19 pandemic financial downfall
S&P Global Ratings have released an update on the City’s financial position. They have determined that the City of Elgin is positioned well to withstand the financial aspects of the COVID-19 pandemic. It said that “the City of Elgin’s very strong budgetary flexibility and liquidity leaves it well-positioned to withstand the near-term effects of the COVID-19 pandemic and current recession.”
The General Obligation bonds assigned by S&P Global Ratings on March 4, 2020. Have given ‘AA+’ rating and stable outlook. Chief Financial Officer and Budget Officer Debra Nawrocki said, “Diversifying our revenue streams over recent years has proven to be a prudent strategy.” Nawrocki was happy to receive the rating at such conditions.
Nawrocki added, “This is tremendous news to receive during such uncertain times. I am grateful for the city council’s support in strategic revenue diversification and sound budget management. Going forward, the City will continue to manage taxpayer funds responsibly and effectively in order to continue delivering city services that our residents have come to rely upon.”
The City derives funding from various other sources than property taxes. Due to this reason, Elgin can withstand short-term fluctuations in the economy better than those communities that only rely on a few revenue sources. The capital projects utilize only riverboat gaming funds. With gaming temporarily shut down by the State of Illinois, anticipated losses will not impact the City’s general operations. Still, rather budgeted projects will need to be evaluated and either delayed or canceled.
The Federal Emergency Management Administration (FEMA) funds have been applied for by the City to assist with the pandemic expenditures like costs for needed personal protective equipment and overtime costs.