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Groves staff announces AA‑minus credit rating, plans certificates of obligation issuance
Summary
City staff told the board the city received a double‑A minus rating with a stable outlook and will issue certificates of obligation, a move staff said will save the city 'hundreds of thousands' in interest; board noted the result as positive for financing local projects.
City staff told the Economic Development board on July 2 that the city secured a double‑A minus credit rating with a stable outlook in advance of issuing certificates of obligation.
Staff member (S4) described the rating as "double a minus with a stable outlook," and said the stronger rating is expected to reduce borrowing costs for the planned certificates‑of‑obligation sale. S4 told the board the improved rating is a strong commentary on the city's financial policies and should save the city "hundreds of thousands of dollars" in interest expense on the sale.
Board members responded positively and noted the rating had not been available to the city in 15–18 years; they described the result as an important step for financing local priorities without significantly increasing the city’s cost of capital.
The announcement was informational; the board did not take formal action on the certificates during the workshop.
