Presentation on Lexington’s bond rating

At the Budget, Finance, and Economic Development Committee meeting, City Council heard from Baird, a financial advisory firm that works with LFUCG. Representatives from Baird presented on the city’s bond rating as it relates to Lexington’s debt service. Baird's report cites Lexington's diverse economy and successful rebound from the pandemic as reasons for the City's stable credit situation. You can view the full presentation here.

Bonds can be thought of like loans. They are a certain amount of money given to the government by an investor, that will then be paid back with interest by a specific date. You can read more on bonds and how they are spent here.

Bond Rating is then the likelihood of that investment being paid back. This can be thought of as similar to a credit score for our government. You can read more about the bond rating process here.

Debt Service is the money required to pay back the initial loan plus interest, for any outstanding debt.

Presenters from the Baird financial group assured Council that Lexington’s debt service is in good standing and that interest rates for the City continue to be historically favorable. No action was taken by the committee at this time.

The Budget, Finance, and Economic Development Committee met on Tuesday, March 21, 2023 at 1PM in Council Chambers. You can watch the recording on LexTV.