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City of Lee's Summit >> About the City >> News Releases
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Lee's Summit city logo

News Release

FOR IMMEDIATE RELEASE

Tuesday, April 24, 2018

City Water and Sewer Revenue Bonds Upgraded to Aa1 by Moody’s Investors Service

The Lee’s Summit Water Utility’s water and sewer bonds were recently upgraded to Aa1 from Aa2 by Moody’s Investors Service. The new Aa1 rating is assigned to the City’s $2.5 million of rated debt outstanding. Moody’s cited the Water Utility’s “high debt services coverage ratios and healthy liquidity due to strong management practices” as among the factors considered in the rating, noting the “affluent service area wealth indices, stable customer base, and low debt burden.”

The April 11 rating signals the strength of the Water Utility’s financial policies and practices, long term planning, and its ability to meet financial obligations, “Debt service coverage was very strong in 2017 at 14.4 times and should remain strong through the bonds maturity date of 2021,” commented Moody’s.

“We have worked diligently to improve the Water Utility’s financial strength which is evident in Moody’s rating of Aa1; a significant climb from the A1 received in 2001,” said Director of Water Utilities Mark Schaufler. “This rating is indicative of our solid financial position obtained in part, by implementing performance measures and financial practices recommended by our customer-driven Water Utility Advisory Board.”

Moody’s Aa1 rating is also attributed to the utility’s strong operating margins and sound infrastructure. The Water Utility has made strategic investments in system renewal while maintaining water and sewer customer rates slightly below the average for the metropolitan area. Projects such as the replacement of 14 miles of water main and the rehabilitation of sewer lines ensure that residents have reliable water and sewer services that meet the needs of a growing community. According to Moody’s, the utility’s water supply capacity is sufficient to meet the city’s needs through late 2030s before additional capacity is needed to accommodate customer growth.

Operationally, the Water Utility received an almost perfect Insurance Service Organization (ISO) Public Protection Classification rating (38.6 out 40 points possible). This is a measure of the water supply system necessary for fire suppression purposes and is used by insurance companies to determine insurance premiums for commercial and residential properties.

For additional information regarding Lee’s Summit Water Utilities visit LSwater.net or call 816-969-1900.

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