Naperville's top-tier bond ratings, reaffirmed for the 30th consecutive year, will let the city borrow $40 million for electric and water projects at the lowest interest rates available to any municipality.

Both S&P Global Ratings and Moody's renewed Naperville's highest possible marks in early July, according to a city announcement published Wednesday, July 15. The ratings were reviewed specifically in conjunction with the $40 million bond issuance scheduled for late July 2026. The city's 2024 bond sale was $21 million for water and wastewater work; the city has not publicly detailed why the 2026 issuance is nearly double that amount.

Moody's described Naperville as "the second largest local economy in Illinois," citing a growing economic base and budgetary flexibility tied to its home rule status. S&P pointed to high reserves, low debt, stable financial results and what it called a sophisticated management team.

Retail ranking holds for ninth year

That financial strength is fed in part by Naperville's retail economy, which a new industry report confirms remains the strongest in suburban Illinois. The 2026 Melaniphy Chicagoland Retail Sales Report found that Naperville generated more than $5.7 billion in retail sales in 2025, keeping its title as the No. 1 retail market in Illinois outside Chicago for the ninth straight year. The city overtook Schaumburg for that distinction in 2017.

Naperville led all suburbs in grocery, dining and drinking, home improvement, and auto dealer and gas station sales. Those categories feed directly into the sales tax revenue that funds city services along corridors like downtown Washington Street, Route 59 and Ogden Avenue.

"When businesses generate strong sales tax revenue, that money helps pay for city services, roads and public safety, so the burden doesn't fall as heavily on homeowners through property taxes," Mayor Scott Wehrli said in the city's July 15 announcement.

One gap the city is chasing

Even with the top ranking, Naperville acknowledges a hole in its retail lineup. At a June 17 City Council meeting, Wehrli said the city's retail revenues "are leading in a lot of different areas, but we are lagging" in home goods and furniture. The city approved a tax incentive extension to help recruit a home goods retailer to Westridge Court on the Route 59 corridor.

What it means for utility bills

The AAA rating lowers borrowing costs on capital projects that Naperville utility customers ultimately pay for through their bills. Naperville water customers pay roughly $150 per month, about half the nearly $300 monthly bill facing Illinois American Water customers in nearby communities, according to a rate comparison cited at an Illinois Commerce Commission hearing Wednesday, July 15.

The full S&P and Moody's rating reports are available on the city finance page at naperville.il.us.