Citing Rosemount’s strong economy and tight financial controls, Standard & Poor’s Financial Services (S&P) has given the City a high credit rating as it sells bonds for improvements in a new subdivision.
An S&P report placed Rosemount’s bond rating at AA+, the second-highest level. It is one level above the equivalent rating that was assigned by another firm in 2015, the last time Rosemount’s credit was reviewed.
Ratings can affect the price that cities receive when they sell bonds for borrowing. Cities with better credit generally pay less in interest.
“We always like good news when it comes to interest rates,” Mayor Bill Droste said during the July 18 City Council meeting. “Lower is better.” [See the Council discussion.]
In its report dated July 14, S&P cited the community’s “very strong” economy. It also pointed to City government’s strong management and good financial policies and practices. The full report can be seen on the City website.
The credit review took place as the City prepared to sell $1.12 million in general obligation improvement bonds. Because the interest rate came in lower than planned, the City only needed to sell $1.055 million in bonds.
The money raised by the sale will be used to make improvements in a new subdivision, the Greystone 6th Addition. The borrowing will be paid off through special tax assessments on the subdivision rather than in the City’s overall property taxes.