S&P Global Ratings has reaffirmed the City of Falcon Heights’ AAA bond rating—the highest rating possible. This top-tier rating enables the City to borrow money at lower interest rates, thereby saving taxpayers money on capital improvement projects.
Ahead of issuing $1.85 million in bonds for the 2025 Capital Improvement Program, the City underwent a credit review. Falcon Heights is one of only about 30 cities in Minnesota to hold an AAA rating, which allows us to secure the most favorable borrowing terms.
In its report, S&P highlighted the City’s “stable, well-managed finances with consistently high reserves relative to operating revenues,” as well as “low debt and liability metrics with fairly rapid amortization, no additional debt plans, and manageable pension costs.”
At the July 9 City Council meeting, the Council approved the $1.85 million in general obligation and tax abatement bonds at an average interest rate of just 3.484%. These funds will support the 2025 Pavement Management Project and the Community Park Renovation Project, which will begin later this summer and continue into the fall.
