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Smithville authorizes COP financing after S&P affirms ratings for planned utility debt
Summary
The board approved certificates of participation parameters by emergency ordinance after City Administrator Gina Wagner told aldermen S&P affirmed the city 's ratings, positioning the city for a scheduled sale. The ordinance passed 6-0 on both readings.
The Smithville Board of Aldermen on Tuesday approved parameters for a planned sale of Certificates of Participation (COPs) to finance city utility projects, moving the measure under an emergency ordinance so the sale can proceed as scheduled.
City Administrator Gina Wagner told the board that in a ratings call with S&P Global the city received continued favourable ratings, a development she said should help secure better interest rates for the sale. "S&P has continued to assign that a plus for our long term debt and affirmed our double a minus for the COPs," Wagner said during her report.
Why it matters: Certificates of Participation are a form of lease-based debt used by municipalities to fund capital projects. Strong credit ratings typically lower borrowing costs for the city and affect the long-term cost of utility projects financed by the sale.
Details and vote: The board considered and passed Bill 3075-25, authorizing Certificates of Participation Series 2025 and approving related documents. Alderman Atkins moved and the board approved the measure on first reading 6-0; the board then approved the ordinance on second reading 6-0. Wagner noted the emergency two-reading process was used so the city could complete the sale at the planned time.
What the rating summary said: Wagner summarized the ratings direct commentary for the board, which credited Smithville
's "forward-looking budgeting and growing economy and healthy reserves," and cited rapid residential and commercial growth tied to the city
's location and conservative budgeting practices as factors supporting financial stability amid rising expenses.
Process notes: Wagner and city staff, with financial advisor Todd Goffy of Piper Sandler, participated in the ratings call. Wagner thanked city finance staff and the public works team for providing information supporting the rating review. The board adopted an emergency ordinance to keep the sale timeline; no additional approvals were attached at this meeting.
Ending: With the authorizing resolution and documents approved, staff can proceed with the planned COP sale and related closing steps per the city
's financing calendar.
