Davenport municipal adviser Ted Cole told the Deerfield Beach City Commission that the city's credit profile is strong and that the community has room to issue additional debt for capital projects — provided elected officials weigh affordability and reserve policy.

Cole summarized recent rating agency actions and measures: Fitch upgraded Deerfield Beach to AA+ in August 2024; Standard & Poor's holds a AA rating; Moose (Moody's) no longer rates the city. He said the city's tax‑supported debt totaled roughly $70 million at the close of FY2024, with the majority structured as annual payments that amortize over the next two decades. On a 10‑year payout measure, staff said about 53% of tax‑supported debt would be retired in the next 10 years under the current schedule — a sign of relatively rapid amortization that rating agencies view favorably.

On utilities, Cole said the city carries about $29 million of water/sewer debt with annual debt service roughly $2.5–$3.0 million per year. He noted a large maturity in the mid‑2030s that will create a future step down in debt service and potential capacity for new borrowing if planned carefully.

"Higher bond ratings mean that you can borrow at at lower interest rates," Ted Cole told the commission, and he urged the city to continue aligning its capital improvement plan with likely funding sources — using a mix of cash, grants and debt rather than a wish list of unfunded items.

Cole also briefly reviewed investment strategy: state law constrains eligible local government investments; the city's portfolio should match cash‑flow needs and prioritize safety and liquidity. He flagged the current interest‑rate environment as favorable for short‑term investments while warning of market volatility.

Why it matters: a strong rating lowers borrowing costs and expands funding options, but commissioners and staff will need to balance capacity to issue debt with debt affordability — the annual impact of debt service on operating budgets.

Ending: Cole recommended continuing to refine CIP priorities, tying each large capital ask to funding sources and running affordability scenarios before issuing any new debt.