Independent bond-rating agency Moody’s Investors Service recently affirmed its high bond rating for the City of Edina’s $10.8 million general obligation bonds. Moody's maintains a Aaa rating on the City's outstanding general obligation unlimited tax (GOULT) debt. Edina has $95 million of rated GOULT debt and $17 million of lease revenue bonds outstanding.
Moody’s Investors Service first gave the Aaa to the City in 2002. Finding that Edina has a large and affluent tax base, solid financial operations and reserves, the agency has upheld that rating since that time and again reaffirmed it this month. The Aaa GOULT rating reflects the City's large suburban tax base located in the Twin Cities area, strong socioeconomic indices and very healthy financial profile.
The City sold general obligation bonds earlier this week to finance street improvements and utility system improvements within the city in accordance with the City’s Capital Improvement Plan, as well as the replacement of the City’s fire vehicle fleet.
“Having this rating allows the City to borrow money at very low interest rates for needed capital projects. The most recent debt issuance allows us to issue bonds at a true interest cost of 1.95 percent,” said Finance Director Don Uram.
In addition to the Aaa bond ratings from Moody’s, the City also maintains a AAA bond rating from Standard & Poor’s, the company’s highest rating. Standard & Poor’s emphasizes several factors when assigning a AAA rating, including a very strong economy with access to a broad and diverse metropolitan statistical area; very strong management with strong financial policies and practices; strong budgetary performance with operating surpluses in the general fund and at the total governmental fund level; very strong budgetary flexibility and liquidity. Standard & Poor’s expects that Edina will continue to maintain these very strong credit quality characteristics.
For more information regarding the City’s bond ratings, contact Uram at 952-826-0414 or duram@EdinaMN.gov.