City of Dunedin Receives Bond Ratings on Upcoming Stormwater and Water/Wastewater Utility System Financings

The City of Dunedin received new bond ratings from national bond rating agencies. Moody’s rated the City’s general obligation rating as Aa2, an upgrade from the previous Aa3. They also rated the upcoming Water and Wastewater Utility bond issuance approved Thursday, May 17, 2012, as A1 Stable. The upcoming Stormwater Utility financing approved Thursday, May 17, 2012, was rated as Aa3. The ratings from the Water and Wastewater Utility and the Stormwater Utilities were new ratings.

Standard & Poors rated the City’s general obligation rating as AA-. They also rated the upcoming Water and Wastewater Utility bond issuance approved Thursday, May 17, 2012, as AA- Stable. The upcoming Stormwater Utility financing approved Thursday, May 17, 2012, was rated as AA. All three ratings were new ratings.

Fitch rated the upcoming Stormwater Utility financing approved Thursday, May 17, 2012, as AA-. The ratings from the Water and Wastewater Utility and the Stormwater Utilities were new ratings.

The ratings were sought in conjunction with two upcoming financings. The Water and Wastewater Utility bond issuance includes a refinancing that is anticipated to save rate payers $1.43 million during the life of the bonds.

The Stormwater Utility financing includes a refinancing that is anticipated to save rate payers and $290,000 during the life of the financing. The ratings reflect the financial strength of the City and the utility systems, City Commission’s policies, as well as the City’s continued commitment to funding infrastructure. Due to the strength of the City’s AA- ratings, there will be an estimated $479,064 lower borrowing cost on the total Water and Wastewater issuance.

The Water and Wastewater Utility bond issuance includes $2.2 million of additional funding for a water line replacement on the Causeway and Curlew Rd. The Stormwater Utility Financing includes $3.1 million for the Orangewood Outfall Drainage project.

“The ratings agencies recognized the City’s commitment to infrastructure, as well as how the City has been managed during these economically challenging times,” said Mayor Dave Eggers. “The savings from refinancing will help to maintain low rates for the residents and continue our infrastructure programs.”

Editor's Note: This is a May 17 press release from the City of Dunedin.