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. . . New Issue: Elk River (City of) MN Page 1 of3 Mood}'sResearch.com I !-fome Moody's In1fesfo~s Service G/aba/Credlt R~h Municipal Credit Research New Issue Published 18 Oct 2000 Elk River (City of) MN Contacts Patrick Williams Dianne Golub 212-553-4940 212-553-0566 Moody's Rating Issue Rating General Obligation Tax Increment Bonds, Series 2000A A3 Sale Amount $800,000 Expected Sale Date 10/23/00 Rating Description General Obligation Unlimited Tax G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B A3 Sale Amount $1,275,000 Expected Sale Date 10/23/00 Rating Description General Obligation Unlimited Tax General Obligation Improvement Refunding Bonds, Series 2000C A3 Sale Amount $900,000 Expected Sale Date 10/23/00 Rating Description General Obligation Unlimited Tax Taxable General Obligation Tax Increment Refunding Bonds, Series 2000D A3 Sale Amount $510,000 Expected Sale Date 10/23/00 Rating Description General Obligation Unlimited Tax MOODY'S ASSIGNS A3 TO ELK RIVER (MN) G.O. BONDS, SERIES 2000A, 2000B, 2000C, AND 20000 $21.99 MILLION OF DEBT AFFECTED Opinion Moody's has assigned an A3 rating and positive outlook to Elk River's, (MN) $800,000 General Obligation Tax Increment Bonds, Series 2000A, $1.275 million G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B, $900,000 General Obligation Improvement Refunding Bonds, Series 2000C, and Taxable General Obligation Tax Increment Refunding Bonds, Series 2000D. The rating is based on the city's diversifying and growing tax base, strong financial position evidenced by growing reserves, and high, yet manageable, debt burden. All series of bonds carry an unlimited tax general obligation pledge of the city. Proceeds from Series A will be used to finance the East Elk River Improvement project. Series B proceeds will finance water and sewer infrastructure improvements along with the extension of an existing parkway. Proceeds from both series C and D will be used to refund portions of the city's outstanding general obligations. RAPIDLY GROWING CITY BENEFITS FROM PRIME LOCATION Moody's expects continued tax base growth for the city due to its favorable location in the high growth corridor between Minneapolis (rated Aaa)/St. Paul (rated Aa2) metro area and St. Cloud (rated A 1). Growth of this $883 million tax base has been rapid, averaging 10.4% annually over the last five years, reflective of a growing population which has increased over 48% since 1990. Housing development, which has averaged http://www.moodysresearch.co. ../7 5F6685 802CE50 I F8525697C00786C 12?OpenDocumen 10/23/2000