Moody’s Investors Service has upgraded the City of Waukee general obligation rating from Aa3 to Aa2 . Also, Moody’s has assigned the Aa2 to the City’s $13.9 million General Obligation Bonds, Series 2017A. Post-sale, the City will have $62.4 million of general obligation unlimited tax (GOULT) debt outstanding.
“This bond rating upgrade is confirmation of Waukee’s bright future,” said Waukee Mayor Bill Peard. “It also reflects the commitment of the city council and me to strong financial management principles.”
General Obligation Bonds, Series 2017A, will be used by the City to finance many capital improvement projects, including Alice’s Road Phase 4 construction and engineering, Waukee Dog Park Phase 1 improvements, Raccoon River Valley Trailhead parking lot improvements, traffic signalization for several major intersections, and community entrance signs.
From Moody’s Investors Service Report:
Summary Rating Rationale
The Aa2 reflects the city’s growing tax base favorably located in the Des Moines (Aa2 stable) metro area, strong demographic and socioeconomic trends, and stable financial position characterized by balanced operations and a long-term maintenance of healthy reserves. Additionally incorporated into the rating are the city’s high fixed costs which are associated with an above average debt burden and low pension burden.
Waukee’s Strengths
- Growing city favorably located in the Des Moines metro region
- Strong demographic and socioeconomic trends
- Stable financial operations characterized by long-term maintenance of healthy reserves
What Factors Could Lead to an Upgrade?
- Moderation of the city’s debt burden and reduction in fixed costs
- Substantial tax base growth
What Factors Could Lead to a Downgrade?
- Deterioration of the tax base and weakening of the city’s demographic profile
- Significant declines in available operating reserves or liquidity
- Further material increase in the city’s debt burden
To view the complete report from Moody’s Investors Services, visit www.moodys.com.