Finance Department staff members were busy this week preparing for the 2012 Refunding Bond sale. Much of the work was to complete the Preliminary Official Statement. It is similar to a “prospectus” for private-sector investment opportunities, and includes information on the City’s finances, local economy, purpose of the refunding bonds, etc.
In addition, staff and Kane McKenna held conference calls with the City’s two credit rating agencies, Fitch Ratings and Moody’s Investors Services. The credit rating agencies require a significant amount of information that is not included in the Official Statement in keeping with industry practice and security laws. For example, the Official Statement includes audited information on actual financial results for prior fiscal years, but the rating agencies want information for the most recent fiscal year, even if it is unaudited information, as well as the City’s projections for the current fiscal year. Preparing this information is a substantial workload that has kept staff busy. Finance staff expects both rating agencies to affirm the City’s AAA bond ratings.