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City of <br /> Elk Request for Action <br /> River <br /> To Item Number <br /> Mayor and City Council 9.1 <br /> Agenda Section Meeting Date Prepared by <br /> Worksession January 21, 2014 Tim Simon, Finance Director <br /> Item Description Reviewed by <br /> Standard and Poor's Rating Methodology and Cal Portner, City Administrator <br /> Assumptions Update Reviewed by <br /> Action Requested <br /> No action requested, just information on new Standard and Poor's (S&P) rating methodology and <br /> assumptions. <br /> Background/Discussion <br /> In October of 2013, S&P updated its methodology and assumptions for assigning credit ratings to general <br /> obligation bonds in the United States. <br /> Based on these new criteria and assuming unchanged credit characteristics, S&P expects 60% of the <br /> ratings will not change, 30% of the ratings would increase and 10%would decrease. Since the city has <br /> not issued any new general obligation bonds we have not received an updated rating based on the new <br /> criteria. <br /> Our financial advisor,Terri Heaton from Springsted,will present information on the new criteria and <br /> offer insight on some recent ratings. Springsted works with several cities that have recently been <br /> reviewed under the new criteria and are helping us prepare for when we issue the wastewater bonds later <br /> this year. <br /> Financial Impact <br /> None <br /> Attachments <br /> • Standard and Poor's: U.S. Local Government General Obligation Ratings: Methodology And <br /> Assumptions. September 12, 2013 <br /> • Springsted's newsletter. November 2013 <br /> P a w E A E U s r <br /> NaA f RE] <br />