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Department Approval <br />�. �: ,� <br />Item Description: <br />�i1 `Y <br />��r I <br />REQUEST FOR COUNCIL ACTION <br />Recognize Bond Rating Upgrade <br />Date: OS/12/14 <br />Item No.: 10.c <br />City Manager Approval <br />�� ��.� <br />� <br />BACKGROUND <br />Earlier this year, the City of Roseville received a bond rating upgrade from Standard & Poor's (S&P), <br />one of the two municipal credit rating agencies commonly used throughout the State. Our rating with <br />S&P went from `AA' to `AAA' which is the highest rating available. This upgrade follows an `Aaa' <br />rating upgrade we received from Moody's two years ago. <br />Over the past several months, City Staff has been warking with S&P to highlight the City's <br />commitment to long-term financial strength and sustainability. We specifically emphasized our <br />strategic financial planning efforts, historically balanced budgets, and cash reserve levels. Other factors <br />included our strong and diverse tax base, and above-average household incomes. A copy of the rating <br />report is attached. <br />Achieving a higher bond rating is significant because it results in lower borrowing costs. With the <br />recent $27 million bond issuance it's estimated that the City saved over $600,000 because of its strong <br />bond rating. These savings will continue with any future bond issuance. <br />With this recent bond rating upgrade, Roseville became only the 9th Minnesota City to receive the <br />highest bond rating from both S&P and Moody's. This achievement is a major accomplishment and a <br />reflection of the financial discipline exhibited by the City Council and Staff over many years. Terri <br />Heaton, Senior Vice President with Springsted Financial Advisors will be in attendance to present the <br />City with a plaque to recognize this historic milestone. <br />POLICY OBJECTIVE <br />Not applicable. <br />FINANCIAL IMPACTS <br />Not applicable. <br />STAFF RECOMMENDATION <br />Not applicable. <br />REQUESTED COUNCIL ACTION <br />Not applicable. <br />Prepared by: Chris Miller, Finance Director <br />Attachments: A: Standard & Poor's Rating Reports <br />Page 1 of 1 <br />