CCP 06-09-1997 - Laserfiche WebLink

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I' " I CITY OF ARDEN mLLS " MEMORANDUM DATE: June IS, 1997 I TO: Brian Fritsinger, City Administrator I FROM: Terrance Post, City Accountant@ I SUBJECT: Credit Rating Agency Recommendation Backlrround I Over the course of the last month, I have interviewed representatives from Moody's Investors Service (Pat South) and Standard & Poor's (Kevin Taylor) in regards to the City of Arden Hills re-establishing a bond rating. As you are aware, the City was previously rated A-I by Moody's. I Moody's Interview I Steve Apfelbacher of Ehlers and myself met with Ms. South at the Army Reserve facility in Arden Hills to provide an overview of Arden Hills, obtain information about Moody's and try to see how Moody's would react to different City financial events. At the conclusion of the Ie interview, I had the feeling that Arden Hills would be "just another credit" to Moody's and was generally not impressed with this organization. I Standard & Poor's Interview Steve Apfelbacher, Brian Fritsinger and myself met with Mr. Taylor at the Green Mill Restaurant in St. Cloud and followed the same interview format. After this interview session, I had the I feeling that Standard & Poor's was much more current on this market, and had a genuine customer interest. In short, I was much more impressed with this vendor than Moody's. I Recommendation I would recommend that the City of Arden Hills select Standard & Poor's as a bond rating agency to establish a credit rating for the City in anticipation of a likely 1997 bond issuance in I conjunction with Gateway Development activities. I anticipate the costs for such a rating to be approxirnately $4,000 and would ultimately be funded from Tax Increment Financing District No.2 revenues. I I I if I