With Bolingbrook bonds slipping further and further away from a AAA rating, why is the local government not informing their residents that it is on the brink of financial disaster or bankruptcy? Because they would not get re-elected if they told the truth, heaven forbid!
Bolingbrook over the past few years have slipped in bond rating from AAA to a AA, A, and now a BBB credit rating according to S&P. A BBB rating is the last rating one can receive before it slips to a "junk bond".
We warned the residents during the last Mayoral election to elect a non-spending Mayor and board of trustees. Instead, many of you did not even vote. Since then (2 years ago), we have taken out more debt that can even be paid back. Some analysts are stating that we might have taken out more than IL law dictates. This happened because our Mayor and Rubber stamped board of Trustees have decided to build a golf club that loses revenue, buy an airport, and get into housing developments that tanked. All of these have not been fixed or are profiting yet. They spend money like it is their money and they are rich. Then they tax the residents higher and higher hoping it will help.
Now the Mayor wants to "buy and run" a water company. This additional debt will drop Bolingbrook bonds into Junk bond rating. Once a rating is listed as a junk bond, it is highly likely the debt cannot be repaid and the creditor could declare bankruptcy. (That is the Village of Bolingbrook).
According to S&P, "the holder of any debt is subject to interest rate risk and credit risk, inflationary risk, currency risk, duration risk, convexity risk, repayment of principal risk, streaming income risk, liquidity risk, default risk, maturity risk, reinvestment risk, market risk, political risk, and taxation adjustment risk. Interest rate risk refers to the risk of the market value of a bond changing in value due to changes in the structure or level of interest rates or credit spreads or risk premiums. The credit risk of a high-yield bond refers to the probability and probable loss upon a credit event (i.e., the obligor defaults on scheduled payments or files for bankruptcy, or the bond is restructured)."
Call your local Trustee and tell them to stop spending money. Tell your neighbors what the credit ratings are and spread the word. To find out more, visit http://www.thenumbercrunchers-bolingbrook.com/.
This is the problem with the Mayor and his cronies. All they do is spend and then increase taxes. Mr Mayor, when will you stop?
ReplyDeletePS I remember the article in the Tribune that stated how you live such a luxurious life... must be nice that I, and other residents, have paid dearly for it.
Ya, he gets money for that Jag... and I don't mean his wife or girlfriend. That money comes from the taxpayers.
ReplyDeleteWrong, as usual!
ReplyDeleteOne set of Bonds has slipped from AAA to AA+
http://www.standardandpoors.com/ratings/public-finance/ratings-list/en/us/?entityID=288520&issueID=4468035
One other set of bonds slipped from A to BBB Developing.
http://www.standardandpoors.com/ratings/public-finance/ratings-list/en/us/?entityID=288520&issueID=4468034
AAA: An obligor rated 'AAA' has extremely strong capacity to meet its financial commitments. 'AAA' is the highest issuer credit rating assigned by Standard & Poor's.
AA: An obligor rated 'AA' has very strong capacity to meet its financial commitments. It differs from the
highest-rated obligors only to a small degree.
BBB: An obligor rated 'BBB' has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its
financial commitments.
http://www.standardandpoors.com/servlet/BlobServer?blobheadername3=MDT-Type&blobcol=urldata&blobtable=MungoBlobs&blobheadervalue2=inline%3B+filename%3Dunderstanding_ratings_definitions.pdf&blobheadername2=Content-Disposition&blobheadervalue1=application%2Fpdf&blobkey=id&blobheadername1=content-type&blobwhere=1243834063620&blobheadervalue3=UTF-8
Hell, the ENTIRE country was just downgraded from AAA to AA
Rumor has it you don't want to be living in Bolingbrook come 2016. The Bonds that will come due will be a problem for whomever the new mayor is.
ReplyDeleteSimilar to what Daley left Emanuel in Chicago.
BBB Developing means BBB is developing their site and you cannot view it yet. Funny.
ReplyDeleteBBB is the last rating before a junk bond. I am not sure any other local municipality has taken out a bond on a BBB rating in the area lately. That means that they have overspent money. It is not rocket science!
Jim,
ReplyDeleteJoliet has some bonds listed as BBB/Developing and AA+/Negative
Problem for Bill Mayer in 2016? I think it will be a problem for every resident. We will see treble property taxes in 5 years. A house worth $200,000 will pay $15,000 in property taxes very year.
ReplyDeletePeople who are in vigorous denial over the debt downgrades being a disaster for Bolingbrook are like someone jumping off a tall building and all the way down saying "so far so good!"
ReplyDeleteWhat about Joliet? They have a negative rating and a BBB rating.
ReplyDelete