enfrdeitptrues

Monday, 25 September, 2017

420 N. POKEGAMA AVENUE

 
 
S&P Global Ratings assigned its 'AA-' rating to Grand Rapids, Minn.'s series 2017A general obligation (GO) street reconstruction bonds.  This is a positive step increase in the City’s previous bond rating.
 
“This increase in bond rating is a direct reflection of the City’s great fiscal policies, positive economic development that is occurring in our City, and the dedicated employees who work tirelessly for our community. The higher ratings will result in lower bond interest rates saving tax payers money” states Mayor Dale Adams.  
 
The 'AA-' rating reflects our view of the City of Grand Rapid’s:
Strong management, with "good" financial policies and practices under our Financial Management Assessment (FMA) methodology; 
 
Adequate budgetary performance, with an operating surplus in the general fund but an operating deficit at the total governmental fund level in fiscal 2016; 
 
Very strong budgetary flexibility, with an available fund balance in fiscal 2016 of 67% of operating expenditures; 
 
Very strong liquidity, with total government available cash at 64.8% of total governmental fund expenditures and 3.6x governmental debt service, and access to external liquidity we consider strong; 
 
Weak debt and contingent liability position, with debt service carrying charges at 17.8% of expenditures and net direct debt that is 123.3% of total governmental fund revenue, but rapid amortization, with 75.9% of debt scheduled to be retired in 10 years; and 
 
Strong institutional framework score.