5.1. SR 04-05-2010 - Laserfiche WebLink

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Summary: Elk River, Minnesota; General Obligation • s e US$7.8 mil GO cap imp plan bnds ser 2010A dtd 04/21 j2010 due 02/01/2023 Long Term Rating AA+/Stable New Rationale Standard & Poor's Ratings Services assigned its 'AA+' rating, and stable outlook, to Elk River, Minn.'s series 2010A general obligation (GO) capital improvement plan bonds. 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 extremely 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 2010A bond proceeds to refund the 2011-2023 maturities of the city's series 2002A and 2002B bonds outstanding for interest cost savings. The city's full faith and credit GO pledge secures the series 2010A bonds. 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 45% since 2000 to a current estimate of 23,888. 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 in the city. 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 (1,991 employees); • Sherburne County (626); • Wal-Mart Stores Inc. (425); and • Guardian Angels of Elk River (207), a nursing home. County unemployment averaged 9%, as of December 2009, above the state's rate but below the nation's rate. Income levels are a strong 127% of the nation's median household effective buying income. Taxable market value increased by an average of 10.1 % annually between fiscals 2004 and 2008 to $2.3 billion. Indicated market value, a better representation of area market prices, was $2.4 billion, or, in our opinion, an extremely strong $101,706 per capita. Residential properties account for 56% of the property tax base while commercial and industrial properties account for 29%. The tax base is very diverse with the 10 leading taxpayers accounting for 11% of net tax capacity. The city's good financial management practices have contributed to a strong financial profile, including consistently Standard & Poor's ~ RatingsDirect on the Global Credit Portal ~ March 18, 2010 2