01-10-2005 Council Packet - Laserfiche WebLink

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t -s Global Credit Research New Issue 10 DEC 2004 New Issue: Orono (City of) MN MOODY’S ASSIGNS All RATING TO THE CITY OF ORONO'S (MN) $920,000 GO IMPROVEMENT REFUNDIN BONDS. SERIES 2004B Aal RATING AFFIRMAHON AFFECTS $3.5 MILUON OF OUTSTANDING PARITY DEBT, INCLUDING CURRENT ISSUE Municipality MN Moody's Rating ISSUE RATING General Obligation Improvement Refunding Bonds. Senes 2004B Aal Sale Amount S920.000 Expected Sale Date 12/13/04 Rating Description General Obtigation Unlimited Tax Opinion NEW YORK, Dec 10, 2004 ~ Moody's has assigned a Aal rating to the City of Orono’s (MN) $920,000 General Obligation Improvement Refunding Bonds. Series 2004B Concurrently, Moody's affirms the Aal rating on the city's $3.5 million in previously issued panty general obligation bonds and Aa2 rating on the $3 9 million of lease revenue debt Proceeds from the bonds, secured by the city's general obligation unlimited tax pledge, will be used to current refund the 2006 through 2013 matunties of the city's outstanding 1997 Improvement Bonds The high quality Aa1 rating reflects the city's pnmanly residential base characterized by very high wealth levels, sound financial operations with a recent increase in reserves and modest debt levels with rapid pnncipal amortization WEALTHY MINNEAPOLIS RESIDENTIAL SUBURB EXPERIENCING MANAGED GROWTH Moody's expects the city's economic condition to remain strong due to its favorable location 15 miles west of Minneapolis (rated /Val). high value residential development and wealthy population and additional land available for future development. Located on the northern shore of Lake Minnetonka, the city has experienced continued high-end residential development on valuable lakefront property As a result of new construction (histoncatly averaging 30 homes annually) and significant property value appreciation in the city’s residential base, the city's $2.25 billion taxbase has doubled over the past five years Constaiction of a 160 unit high end residential development (townhomes and condos) has begun and residential development is expected to continue at the rate of 20 new homes per year. The population of 7,538 in census 2000, has steadily increased over the last two decades, increasing 6% and 3% respectively. A substantial 93% of the (ax base is residential, and seven of the top ten taxpayers are multi-million dollar lakefront homes Wealth levels and housing values are more than double the state, and the high quality of the residential development n