This comment from Cary Grade School Board President Scott Coffey explains the deterioration in the City of Crystal Lake’s credit rating:

FYI, here is the summary of why Moody’s downgraded the City of Crystal Lake’s credit rating on 6/8/16:

“Moody’s Investors Service has downgraded to Aa2 from Aa1 the rating on the City of Crystal Lake, IL’s outstanding general obligation unlimited tax (GOULT) debt.

“The rating change affects $16 million of rated debt.

“The downgrade to Aa2 incorporates steady depreciation of the city’s tax base and an expectation that future growth may temper relative to the city’s pre-recession trend.

“The rating also factors in an elevated pension burden, moderate debt burden, and the city’s broad legal flexibility to raise revenue.

“The rating further considers the city’s very healthy financial position with recent declines in reserves attributed to capital spending rather than operational imbalances.

“While reserves may decline further in the current year, we expect the city to maintain solid fund balances going forward.”