Laserfiche WebLink
08/23/2000 17:50 ET <br />ATTN: Ron Mooree <br />Orcno <br />REF:N00D1319.0OU FR:N00DYS 10:9522494616 Pagt 1 of 2 <br />MOODY’S ASSIGNS Aal RATING TO THE CITY OF ORONO’S (MN) SERIES 2000 G.O. BONDS <br />$5.6 MILLION IN DEBT AFFECTED <br />Orono (City of) MN <br />Municipality <br />Minnesota <br />Moody’s Rating <br />Issue Rating <br />General Obligation IniproveiDent Bonds» Series 2000 Aal <br />Sale Amount $925»000 <br />Expected Sale Date 08/28/00 <br />Rating Description General Obligation Unlimited Tax <br />NEW YORK) August 23» 2000 -- Moody’s has assigned a Aal rating, and stable <br />outlook, to the City of Orono’s (MN) $925,000 General Obligation Improvement <br />Bonds, Series 2000. Moody’s also affirms the Aal rating on the city’s <br />outstanding $4.7 million in general obligation bonds. Proceeds from the bonds, <br />secured by the city’s general obligation unlimited tax pledge but supported by <br />special assessments, will be used to finance improvements to the sewer system. <br />The rating reflects the city’s growing residential base with very high wealth <br />levels, proposed merger with the City of Long Lake, sound financial <br />operations, and moderate debt levels with rapid amortization. <br />WEALTHY MINNEAPOLIS SUBURB EXPERIENCING MANAGED GROWTH <br />Moody’S expects the city’s economic condition to remain strong due to its <br />favorable location 15 miles west of Minneapolis (rated Aaa), high value <br />residential development and wealthy population, and additional land available <br />for future development. Located on the northern shore of Lake Minnetonka, the <br />city has experienced continued high-end residential development on valuable <br />lakefront property. As a result of both new construction (averxf^ing <br />approximately 30 homes annually; and property value appreciation, the city’s <br />$1.2 billion tax base has averaged 7.4% annual growth over the. four <br />years. Land for approximately 400-500 new residential homes (? acre lots) <br />remains available. Evidencing the residential nature of the nity, 92% of the <br />tax base j.s residential, and six of the top ten taxpayers a> t ivldual <br />residences. Wealth levels and housing values are more thar. douc. (v the state, <br />and the high quality of the residential development is reflected in an <br />extremely high full value per capita of $154,092. <br />PROPOSED MERGER WITH THE CITY OF LONG LAKE SUBJECT TO SEPTEMBER VOTE <br />A merger with the city of Long Lake has been proposed which would create a new <br />city effective January 1, 2001. Already unanimously approved by both city <br />councils, residents from both cities will vote on the issue this September, <br />representing the final step in the merger approval process. It has been <br />reported that the consolidation would allow for more consistent development <br />efforts, and yield approximately $130,000 in combined reduced expenditures, <br />reflecting anticipated economies of scale. Moody’s believes that approval of <br />the merger would not adversely impact Orono*s credit fundamentals, given Long <br />Lake’s sound financial position, moderate debt and full valuation of $139 <br />million, which is approximately 12% of Orono’s current full value.