2. EDSR 02-04-2013 - Laserfiche WebLink

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Summary: Elk River Economic Development Authority, Minnesota Elk River; General Obligation Credit Profile US$9,965 mil GO rfdg lends(Elk River Econ Dev Auth)ser 2013A dtd 02/12/2013 due 02/01/2033 Long Term Rating AA+/Stable New Elk River GO Long Term Rating AA+/Stable Affirmed Rationale Standard&Poor's Ratings Services assigned its'AA+'long-term rating to the Elk River Economic Development Authority,Minn.'s series 2013A general obligation(GO)refunding bonds.At the same time,Standard&Poor's affirmed its'AA+'long-term rating on the city's existing GO debt.The outlook on all bonds is stable. In our opinion,the rating reflects the city's: • Access to the deep and diverse Minneapolis-St Paul and St. Cloud, Minn.metropolitan economies; • Favorable economic indicators,reflecting strong income levels and very strong market value per capita; • Maintenance of very strong reserves,coupled with conservative and strong financial management policies that include long-range budget and capital plans;and • Moderate debt burden. Officials plan to use series 2013A bond proceeds to crossover refund the 2018-2033 maturities of the authority's series 2007 bonds for interest cost savings.The bonds will be general obligations of the city for which its full faith,credit,and taxing powers are pledged. Elk River,the seat of Sherburne County, covers 43.8 square miles approximately 30.0 miles northwest of the Minneapolis-St Paul metropolitan area and 38.0 miles southeast of St. Cloud.The city's population has increased by 40%since 2000 to a current estimate of 23,101 in 2011. Management has stated 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.Along with access to Interstate 94,residents can also'commute into downtown Minneapolis via the city's Northstar commuter rail station. Leading city employers include: • Elk River Independent School District No. 728(1,573 employees); • Sherburne County(578); • Wal-Mart Stores Inc.(424);and • Guarding Angels of Elk River, Inc.(317). WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JANUARY 14,2013 2 1062136( 300126975