CITY OF STANWOOD

PRESS RELEASE

STANWOOD - Stanwood Achieves AA- Rating and Saves Money

The City of Stanwood (the “City”) recently issued Water & Sewer Revenue and Refunding Bonds to finance water and sewer improvements and refinance the City’s 2011 Bonds to achieve interest cost savings.  As part of the bond financing process, the City presented information to the national rating agency of S&P Global Ratings.

According to Interim City Administrator Shawn Smith, “the City received a rating of AA-.    This is a great accomplishment for the City and its ratepayers!  This rating of AA- reflects that the City is well-managed and has good financial practices and policies in place for the benefit of our citizens.  The higher the rating, the lower the interest cost.”

Mayor Elizabeth Callaghan went on to say, “we are proud to achieve the rating of AA- for our community!  City staff have worked very hard on this process.”

According to Accounting Manager Wendy Dowhower, “the rating of AA- was based on the following key factors:  1. Demonstrated track record of strong financial reserves; 2. Strength of the local economy; 3. Financial practices and policies; and 4. Experienced management in operating the utility system in an efficient manner.”

The presentation team prepared for a 1.5-hour conference call with rating analysts from S&P Global Ratings.  The presentation team included: Interim City Administrator/City Engineer Shawn Smith, Accounting Manager Wendy Dowhower, Public Works Director Kevin Hushagen, and Bond Underwriter Jim Nelson of D.A. Davidson & Co.   The team presented information and answered questions that dealt with the topics of management, finances, economic growth, and long-term planning.  

The Water and Sewer Revenue and Refunding Bonds were priced on September 22^nd by D.A. Davidson & Co., serving as Bond Underwriter.  The 20-year Water and Sewer Revenue and Refunding Bonds achieved a combined True Interest Cost percentage of 1.77%.  The City timed the new money and refunding bond near an interest rate low.  The new money bonds financed water & sewer capital improvements of $4,503,999. The refunding bonds achieved total net savings of $281,972 (over the remaining 10 years). After October 6^th, the City will have the additional benefit of liquidating a $199,000 bond reserve fund associated with a 2019 Water & Sewer Revenue Bond.