Homewood-Flossmoor Park District, IL GO Debt Rating Raised To 'A-' From 'BBB+' On Improving Reserves

CHICAGO (S&P Global Ratings) Jan. 11, 2019--S&P Global Ratings raised its 
long-term rating and underlying rating (SPUR) to 'A-' from 'BBB+' on 
Homewood-Flossmoor Park District, Ill.'s general obligation (GO) debt 
outstanding. The outlook is stable.

"The upgrade reflects our opinion of the district's operating reserve 
position, which improved to $477,000 at the end of fiscal 2018 from $547 in 
fiscal 2015," said S&P Global Ratings credit analyst Andrew Truckenmiller. The 
district has made expenditure cuts, realized positive revenue variances, and 
has not increased advances to enterprise funds in recent years that have 
improved its available fund balance position to 11.3% of operating reserves, 
which we consider strong.

Homewood-Flossmoor Park District serves the villages of Homewood and Flossmoor 
in Cook County, about 25 miles south of Chicago. The district operates a wide 
variety of recreational facilities as well as preschool classes and 
afterschool programs for a population of about 30,000.

The stable outlook reflects our view that the district will maintain its 
strong available general fund reserve position while continuing with transfers 
to enterprise funds for debt service payments, and limiting its advances to 
the enterprise funds for any reason. The golf course, which is now 
operationally self-sufficient, provides additional stability to the rating. 
The district's increased property tax receipts as a result of increased 
assessed valuation and strong programming receipts also add stability.

Should the district significantly advance general funds to enterprise funds 
for any reason, or if the district's available general fund reserves return to 
a negative position, for any reason, we could lower the rating.

Should the district continue to improve and maintain its available general 
fund reserve position, and enterprise fund advances are paid back to the 
general fund, we could raise the rating.
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