3.2. SR 05-23-1994 - Laserfiche WebLink

Home Browse Search

SENT BY:MOODY'S INVESTORS SVC 5-1S-94 ;12:1SPM PUBLIC fINANCE DEPT~ 4417425;# 2 . Moody's Municipal Daily Rating Recap e e Elk River. Minnesota Rating date: May 17, 1994 Moody.s rating: Baa 1 $3,495,000 General Obligation Improvement Bonds, Series 1994A $1,280.000 General Obligation Sewer Revenue Bonds, Series 1994B $1,080,000 G neral Obligation Storm Sewer Revenue Bonds, Series 1994C Sale: $S.S5S,ooO Date of Sale: May 23 Type: Competitive Security: General obligation, unlimited t x; special assessments against benefited properties d net reve- nues of the city sewer utility and storm se er utility are also pledged. Use of Proceeds: Trunk sewer, water, st rm drainage and street improvements; sewage treatme t plant expansion. Last Rating change: December 1974: aa to Baal Update of related ratings: Elk River Economic Development Aut orlty, Minnesota City Hall & Law Enforcement Facilities evenue Bonds Moody's rating: laa Elk River, Minnesota General Obligation State Aid Road Bonds Moody's rating: A Credit Comment: Key factors supporting the confir- mation of the Baal rating on the general obligation bonds of the City of Elk River are as follows: . Despite pressures related to this rapidly growing com- munity's mounting capital, personnel and service needs, financial operations, which are largely sup- ported by property taxes, state aid, and special assess- ments, continue to be satisfactorily maintained. Small annual increases in the General Fund balance over the past four fiscal years are largely attributable to unan- ticipated revenues and conservative budgeting. Year-to-date general operations compare favorably to budget and the city estimates that the December 31, 1994 General Fund balance will be somewhat above that of the prior year. . With the current issuance both debt burden and per capita debt remain well above the medians for cities of similar population size. Additional borrowing can be expected in order to accommodate the city's growth and the issuance of $225,000 in tax increment supported general obligation debt is expected within two months for library expansion, along with $1.6 million in special assessment backed general obliga- tion debt for a new street anticipated later this year. However, support from special assessments, utility enterprise revenues, and tax increments for most of the city's outstanding general obligation debt allevi- ates pressure on the property tax rate. . Elk River benefits from its close proximity to the Minneapolis-St. Paul metropolitan area, as evidenced, in part, by its rapid population growth and continuing economic diversification. Additional growth is expected since the city remains almost two-thirds undeveloped. Resident income levels and housing val- ues are above those of the state in general and, tradi-