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In the ever-evolving financial landscape of local governments, Chesterfield Township has achieved a commendable feat: a credit rating upgrade. With the issuance of over $18 million in special assessment and capital improvement bonds, S&P Global Ratings has bumped up the township’s bond rating from AA- to AA/Stable. Delving into the specifics of this achievement provides invaluable insights for other local governments aspiring to elevate their credit standings.

Chesterfield’s Success Story

A combination of factors contributed to Chesterfield’s rating boost:

Growth and Resilience

S&P highlighted the township’s expanding property tax base, increasing population, and exceptionally robust reserves as significant contributors to the upgrade. Chesterfield’s balanced operations and the conscious decision not to significantly draw down reserves further solidified the positive outlook.

Strategic Bond Issuance

The Chesterfield Township Board of Trustees sanctioned the issuance of 2023 capital improvement bonds totaling $14.15 million. This foresight was employed to finance several crucial projects, including sanitary sewer enhancements, pump station upgrades, and infrastructural developments at the municipal offices and police department.

Economies of Scale

Bond attorney Patrick McGow from Miller Canfield underscored the efficiencies garnered when multiple projects are bundled into a single bond issue. Such bundling doesn’t merely pique investor interest, but also trims down overall issuance costs.

Anticipated Revenue Growth

Victoria Bauer, Chesterfield’s finance director, projected about $10.797 million in augmented revenue over the bond’s lifespan. The future promises a broader tax base, bolstered by increased building permits and a surge in water and sewer usage.

Structured Repayment

Chesterfield meticulously mapped out the repayment structure for the bonds, from allocating capital improvement bond funding for the Northeast Sanitary Sewer to utilizing the general fund for the Anchor Bay Pump Station and municipal office upgrades.

Special Assessment Bonds

An additional resolution authorized $4.11 million for special assessment bonds. These bonds, characterized as “self-supporting” by rating agencies, ensure that debt payments spring from special assessments rather than the general fund.

Strong Financial Infrastructure

The S&P credit summary heaped praises on Chesterfield’s formidable financial framework, underscored by efficient financial management practices. Elements like monthly budget-to-actual reports, a comprehensive rolling five-year capital plan, and cogent investment, debt management, and reserve policies that mandate maintaining reserves at a minimum 20% of expenditures were particularly highlighted.

Key Takeaways for Other Local Governments

Chesterfield’s success isn’t merely a case study but a template for other local governments. Here’s what they can emulate:

Strategic Planning: Always have a clear vision of your long-term projects and the potential sources of funding.

Maximize Efficiency: Consider bundling multiple projects to attract investors and reduce issuance costs.

Rigorous Financial Management: Implement stringent financial practices, and prioritize regular budgetary reports and long-term capital plans.

Leverage Reserves: Maintain strong reserves and, if possible, avoid drawing them down significantly to maintain a positive fiscal perception.

Structured Repayment Plans: Always have a clear repayment strategy that leverages various sources without overburdening a single fund.

In conclusion, Chesterfield Township’s approach to improving its bond rating offers a roadmap for local governments. Through strategic planning, efficient project bundling, and rigorous financial management, municipalities can enhance their credit standing and pave the way for a brighter financial future.

At Front Line Advisory Group, we are pioneers in Capital Improvement Bond Management, leveraging unparalleled expertise and deep industry insights. Our mission extends beyond consultation – we empower our clients to realize the full potential of their investments, ensuring tax dollars are put to maximum use through astute Program Management Consulting. For more information or to commence your journey towards transformative bond management, reach out to us at

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Chesterfield Township gets credit rating upgrade after issuing $18M-plus in bonds

FLAG provides program management consulting services in Central Texas for municipal and school capital improvement bonds. FLAG is revolutionizing the construction industry and transforming client expectations by obsessing over the basics of budget oversight, schedule enforcement, compliance, vendor management, and stakeholder communication.

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