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6 <br /> KPI: Bond Rating <br />AA Bond Rating or better <br /> <br />RESULTS <br /> <br /> <br />The City currently has a AA Bond Rating. <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />INTERPRETATION <br /> <br />Additional savings could be obtained if the City were awarded a AAA bond rating. The graph above illustrates an <br />interest savings of .13% if the City refunded the $20,450,000 2006A G.O. TIF Bonds with a AAA rating. This would have <br />yielded a savings of $230,000 in today’s dollars over the payment life of the refunded bond. <br /> <br /> <br /> <br /> <br /> <br />RESPONSE <br /> <br />Striving to obtain a AAA bond rating will require a City-wide effort. The City must continue with its efforts to <br />communicate and update its financial condition to Council, maintain an annual capital plan with actual and <br />projected costs and more importantly keep a strong fund balance reserve of all governmental funds. The City will <br />need to create and adhere to a debt policy, show a budget surplus every year for all governmental funds, and <br />create a multi-year financial plan to be monitored and identify future issues and solutions where possible. City staff <br />will contact S & P and/or Moody’s to determine what the actionable steps to increasing the City’s bond rating to <br />AA+ or AAA. <br /> <br />The City issued advanced refunding bonds of $8,705,000 in January of 2016 which S+P continued to hold the City’s <br />rating at AA. <br /> <br /> <br />$5,500,000$5,600,000$5,700,000$5,800,000$5,900,000$6,000,000$6,100,000 <br />Interest Cost <br />Total Interest Payments for 2006A G.O. TIF Bonds <br />AAAAA