HomeMy WebLinkAboutAgenda Report - October 3, 2007 K-04&I&k CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Designation of a Member of the City Council to Participate in the Rating Agency
Presentationfor the Wastewater System Financing
MEETING DATE: October 3,2007
PREPARED BY. City Manager
RECOMMENDED ACTION: Select a Councilmemberto participate in the presentation to rating
agencies (Fitch Ratings and Standard & Poor's) on October 121" in
San Francisco.
BACKGROUND INFORMATION: The City is progressing towards the issuance of debt obligations to
finance improvements to its wastewater system. In order to judge
the creditworthiness of the proposed obligations, it is customary for
investors to give considerable weight to rating agencies who express their opinion concerning an
agency's creditworthiness by assigning a rating. Generally, the higher the rating (AAA, AA, etc.) the
lower the interest rate. Also, bonds may be insured and the price for bond insurance is typically
determined by the underlying rating.
Lodi is scheduled to make a presentation to Fitch and Standard & Poor's on October 12' in San
Francisco. Staff recommends that the Council designate a member to participate in the rating agency
presentation. In addition to the commitment of one day, it is anticipated that one or two rehearsal
sessions will be required.
FISCAL IMPACT: None related directlyto the rating agency presentation. However, the outcome of
the presentation could play a role in determining the eventual interest rate paid by the City.
FUNDING: Not applicable
Blair King,
APPROVED: --=41-
13 g, City Manager