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City of Marquette's bond rating was increased by Standard & Poor's this month from AA- to AA, the city announced.
S&P's reasoning behind the upgrade was that the city is growing as a regional economic center, and has strong property values and a low debt burden. Another major factor was the city's financial flexibility, from both strong reserves and operating millages.
Gary Simpson, the city's chief financial officer, says the better rating will improve borrowing costs, which will make a difference for the large financing the city's done with the Founders Landing development.
The rating upgrade came about as a result of the city's upcoming bond sale to back improvements at Founders Landing.
"The improved rating is expected to lower the City's borrowing cost by approximately 20 basis points. Over the life of the $2.6 million financing, this will likely translate to savings of more than $60,000," says Simpson.
The bonds, which include funding for a seawall and boardwalk at Founders Landing, will be sold in the next month, with priority given to local residents who are interested in purchasing them.
The sale is being handled by Robert W. Baird & Co. of Traverse City and Lansing, the city's financial advising firm.
Writer: Sam Eggleston
Source: Gary Simpson, City of Marquette
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