8.2.A. SR 02-21-2012 - Laserfiche WebLink

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US$1.595 mil GO cap imp rfdg bnds ser 20128 dtd 03/15/2012 due 02/01/2018 Long Term Rating AA+/Stable New Elk River GO cap imp plan bnds ser 2010A dtd 04/21/2010 due 02/01/2023 Long Term Rating AA+/Stable Affirmed Rationale Standard & Poor's Ratings Services assigned its 'AA+' rating and stable outlook to Elk River, Minn.'s series 2012A general obligation (GO) capital improvement plan bonds and series 2012B GO capital improvement refunding bonds and affirmed its 'AA+' rating, with a stable outlook, on the city's existing GO debt. The rating reflects our opinion of the city's: • Access to the deep and diverse Minneapolis-St. Paul and St. Cloud metropolitan economies; • Favorable economic indicators, reflecting, what we consider, strong income and very strong market value per capita; • Maintenance of very strong reserves, coupled with, what we view as, conservative and strong financial management policies that include long-range budget and capital plans; and • Moderate debt. Officials plan to use series 2012A bond proceeds to finance the expansion and renovation of public works facilities and series 2012B bond proceeds to crossover refund the 2014-2018 maturities of the city's series 2007C bonds for interest cost savings. The city's full-faith-and-credit GO pledge secures the bonds. Elk River, the seat of Sherburne County, covers 43.8 square miles, approximately 30 miles northwest of the Minneapolis-St. Paul metropolitan area and 38 miles southeast of St. Cloud. The city's population has increased by 48% since the 2000 U.S. Census to a current estimate of 24,361. Management states that although residents commute into the Minneapolis-St. Paul and St. Cloud metropolitan areas for employment, the city also draws commuters from surrounding communities due to the employment opportunities offered by a number of small companies in the city. Along with access to Interstate 94, residents can commute into downtown Minneapolis via the city's Northstar commuter rail station. Leading city employers include: • Elk River Independent School District No. 728 (2,000 employees); • Sherburne County (605); • Cretex Co. (500), a precast concrete product; and • Wal-Mart Stores Inc. (424). County unemployment averaged 7% as of December 2011, above the state's 5.7% rate but below the nation's rate. Standard & Poors ~ RatingsDirect on the Global Credit Portal ~ February 17, 2012 2