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Mr. Rink, Ms. Swartz and the committee compared and contrasted the city's previous debt <br /> issuances over many years to the proposed one. <br /> Noting the city's increased debt limits, Councilmember Bullock inquired as to how far up against <br /> those limits the city ought to go in an attempt to meet capital improvement needs over the next <br /> several years. <br /> Mr. Rink responded that it is more important to focus on the city's ability to re-pay debt than on <br /> the debt limit and that limits can be arbitrary. He added that the rating agencies are evaluating the <br /> city based on how it will pay back debt and where the funds are coming from, not the city's <br /> relationship with debt limits. Regarding the need for capital improvements, he advised that there <br /> will always be infrastructure needs and that those needs need to be balanced within the confines <br /> of what is affordable. <br /> Mr. Rink reviewed the breakdown of the financing plan which includes $16AM in new projects <br /> for city facility repairs,park improvements, street improvements and sidewalks and $21.2M to <br /> retire last year's note. Mr. Rink, Ms. Swartz and the committee discussed the debt that is <br /> comprised within the retired portion of the debt and how that is handled. <br /> Mr. Rink provided an update and overview on the city's credit rating from Moody's. The City of <br /> Lakewood has been rated Aa2 since 2010. This rating was recently reaffirmed in December 2022 <br /> and is expected to remain in place through 2023. Mr. Rink contextualized the rating, explaining <br /> that the rating is better than the national average for U.S. cities. He also explained that Moody's <br /> takes into consideration a city's management and leadership, and that Lakewood's high rankings <br /> on these criteria help to bolster its rating above than what it would be if the rating were based on <br /> financials alone. <br /> Mr. Rink discussed the timeframe and schedule of the debt issuance, stating that if Council <br /> adopts the accompanying legislation that the sale and marketing of the debt will occur in <br /> February and March. <br /> In response to questions, Mr. Rink discussed the projected borrowing rates for this debt issuance <br /> and compared them to previous years. He discussed the market trends that contribute to these <br /> rates. It was concluded that the higher interest rates are slightly eating into the amount of <br /> principal the city can finance. About$300,000 - $400,000 must go toward interest instead of <br /> capital projects. Mr. Rink further remarked on the volatility in the financial markets. He <br /> summarized that while the overall financial market is volatile that the specific municipal bond <br /> market has recently stabilized. <br /> ORDINANCE 49-2022 -AN ORDINANCE to take effect immediately upon <br /> affirmative vote of at least two thirds of the members of Council, or otherwise to <br /> take effect and be in force at the earliest period allowed by law, further delineating <br /> the acceptable uses and purposes of the Parking Meter Fund, Section 129.16 of the <br /> Codified Ordinances, to include new revenue and expenses associated with <br /> 2 <br />