City of Waukee issued the following announcement on Mar. 13.
Moody’s Investors Service announced that the City of Waukee general obligation credit rating will stay at Aa2, to which the City was upgraded in 2017. This rating allows the City to receive more competitive interest rates for repayment of debt. Post-sale, the City will have $82 million of general obligation unlimited tax (GOULT) debt outstanding.
“Being able to maintain our stable credit rating during a time of such growth takes a lot of strategic work and careful consideration,” said Waukee Mayor Courtney Clarke. “Elected officials work closely with City staff to ensure strong financial management principles are utilized while also delivering quality services and top-notch amenities.”
Series 2020A Bonds will be used by the City to finance urban renewal capital improvement projects. Capital projects include building streets to connect the community to the future Northwest High School, City entrance and wayfinding signs, and ADA sidewalk adjustments.
According to the Moody’s report, the Aa2 rating reflects Waukee’s “growing and affluent tax base with economic ties to the Des Moines (Aa2 stable) metro area, sound financial operations and strong fund balance and liquidity. The rating also reflects the City’s modest pension burden and favorable demographic trends.”
The Credit Opinion Report notes that reduction of the debt burden and fixed costs plus continued tax base growth could lead to a future rating upgrade. Factors listed which could lead to a downgrade include growth in the City’s debt burden or fixed costs, contractions of the City’s tax base and weakening of resident incomes, or significant declines in available operating reserves or liquidity.
To view the complete report from Moody’s Investors Services, visit moodys.com.
Original source can be found here.
Source: City of Waukee