UG Holds Bond Sales and Maintains Stable Credit Rating

During the Thursday, February 29, 2024 Commission meeting, Interim Chief Financial Officer Debbie Jonscher provided an update on Unified Government’s annual bond sales and rating status.  

Earlier that day, the Unified Government had held its annual General Obligation Improvement Bond and note sale, which had previously been authorized in December 2023. Issuance of this debt will obligate the UG into making principal and interest payments for the next 10-20 years. The UG sold two long-term bond issues and one short-term temp note issue with rates ranging from 2.97% to 3.68%, respectively. With the Commission’s approval of the sale, the UG is able to pay back short-term temp notes issued last year. 

Municipal bonds are bonds issued by a local government to raise funds for capital improvements in infrastructure. For example, a city or may issue a bond to finance street, sewer, or public building projects. Municipal bonds are exempt from federal income taxes and sometimes from state and local taxes as well. 

Credit Rating is Stable

Also presented were updates from the UG’s recent ratings calls. Credit rating agencies assign credit ratings based on their analysis of an issuer's ability to make interest payments and repay principal in a timely manner. Standard & Poor’s upheld the credit rating of AA and Moody’s also maintained the credit rating of A1. Both credit agencies stated the UG outlook is stable. The rating reflects strength in the UG’s management team and outperforming budget assumptions.  

“The Unified Government has a good working relationship with our rating agencies,” said County Administrator David W. Johnston. “And we take their advice seriously. We will present options for Commission consideration as we continue in our budget process. In the meantime, we appreciate being recognized for our good fiscal stewardship which is reflected in the stable rating.” 

As part of the organizational deep-dive into our budget process, led by County Administrator Johnston, the Unified Government is focused on strengthening our reserves and addressing debt obligations which will contribute to a stronger rating in the future. For more information on the UG bond sales and rating, please visit wycokckbonds.org.