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Debt Management

Management Services Administrative Services monitors all City debt against the State limit, available bond authorization, opportunities for refunding to reduce future debt service costs and financial projections to determine the best financing for Capital Improvements.

The City of Chandler has experienced significant growth over the last 25 years. The 1985 mid-decade census population was 63,817; the 1990-decade census was 89,862; the 2000 census population was 176,581; the 2010 census population was 236,598; and the June 30, 2014 population is estimated at 244,439.
 
This growth created demand for infrastructure and capital projects. Citizens needed more amenities such as parks, streets, water, and sewer facilities. Financing these capital costs was accomplished through various financing sources, referred to as “bonded debt.” This includes instruments such as general obligation bonds, revenue bonds, excise tax revenue obligations, and certificate of participation notes.
 
Bond Ratings

When new bonds are issued, the three major bond rating agencies typically assign a bond rating that is a reflection of the City’s ability to repay the debt. Each agency has a slightly different rating scale but, in general, top ratings are referred to as “AAA” (triple A) with lower ratings such as “A” (single A) or “B”. In some cases, distinctions are made with upper and lower case letters and “+” or “-“ to further elaborate on the rating. After the initial review, the rating agencies periodically review the City’s financial position and either reaffirm the prior rating, raise the rating, or lower the rating. The City’s most recent bond ratings are as shown below:
 
  Fitch Ratings Moody's Investments  Standard and Poor’s
General Obligation AAA* Aaa* AAA*
Excise Tax Revenue Obligations AAA* Aa1 AAA*
Water/Sewer Revenue Bonds AA+ Aa1 AA
Highway User Fund Revenue Bonds AA Aa3 AA
*Highest rating level from this agency.

These high bond ratings are a positive reflection on Chandler’s financial management and its ability to repay outstanding debt. The higher bond ratings also represent a lower investment risk for potential bond buyers and lower debt costs for the City and its citizens.
 
Independent Registered Municipal Advisory (IRMA) Exemption Disclosure
View
 the Independent Registered Municipal Advisory Exemption disclosure (PDF). The City of Chandler intends that market participants receive and use it for purposes of the independent registered municipal advisor exemption to the SEC Municipal Advisor Rule.