5.5. SR 06-03-1996 - Laserfiche WebLink

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85/38/% 17:SZ:BZ Z1Z-553-4BBB-> 44174Z5 Moodg's Investors Page flBZ Moody's Municipal Daily Rating Recap Elk River, Minnesota Rating date: May 30, 1996 Moody's rating: Baal $2,655,000 General Obligation Sewer Revenue Bonds, Series 1996A $500,000 General Obligation Improvement Bonds, Series 1996B Sale: $3,155,000 Date of Sale: June 3 Type: Competitive Security: General obligation, unlimited tax. Use of Proceeds: Construction of waste water plant and street improvements. Last Rating change: December 1974: Baa to Baal Update of related ratings: Elk River, Minnesota Moody's rating: A General Obligation State Aid Road Bonds Elk River Economic Development Authority, Minnesota Moody's rating: Baa City Hall and Law Enforcement Facility Revenue Bonds Credit Comment: The Baa 1 rating assigned to the general obligation bonds of the City of Elk River has been confirmed based on the following credit factors: Financial Operations Remain Satisfactory Despite pressures of Rapid Growth Pressures continue to be evident in this rapidly growing community. Attention to careful planning and conserva- tive budgeting have allowed the maintenance of satisfac- tory reserve positions and afforded flexibility in meeting growth related pressures, in particular the continued monitoring of capital, personnel, and service needs. Debt Position Relects Growing Community With the current issuance, both debt burden and per capita debt remain well above the medians for cities of similar population size. The city expects to issue $2.1 million in general obligation ice arena bonds within the next 90 days. Additional general obligation backed, spe- cial assessment, and tax increment debt is likely to be issued over the next several years. The results of studies currently being undertaken for extension of utilities and and other infrastructure needs will determine the extent of future borrowing. 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. Proximity to the Twin City Metro Area Fosters Growth The city benefits from its close proximity to the Minne- apolis-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 values are above those of the state in general, and traditionally, county unemployment rates have exceeded state averages. At this time, we have also reviewed and confirmed the A rating on city's general obligation state aid road bonds, which are secured by both the city's general obligation pledge and state road aid allomaents, mad the Baa rating on the Elk River Economic Development Authority's City Hall and Law Enforcement Facility Revenue Bonds, which are backed by the city's annual budget appropriations.