Bond Ratings & Debt
Sometimes there are good reasons for going into debt. Some of these may include:
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Financing projects over time, with a variety of repayment options and revenue streams.
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Minimizing the impact on property taxes.
What does it cost the City if we lose our AA-Bond Rating?
The City of Stillwater currently holds an AA- bond rating on general obligation bonds, and tax notes from Standard and Poor's and Fitch Ratings. Bond ratings measure credit-worthiness. The higher the bond rating, the lower the interest rate paid by the City. Losing the AA- bond rating would result in the City paying more interest on bonds issued.
Common Debt Instruments that City Governments may use
| |
General Bond Obligation |
Tax Notes |
Revenue Bonds |
| Approval Process |
Bond election |
Elected officials |
Elected officials |
| Security/Pledge |
Taxes only |
Taxes and/or revenue |
Revenues of the System |
| Typical Projects |
Capital or public safety asset |
Any public purpose |
Water, sewer and drainage infrastructure |
| Ratings |
Highest rated credit based on ad valorem tax pledge |
Typically 1 or 2 notches lower than a city's tax credit |
Content last reviewed 06.19.2020
