CorrespondenceCorrespondence
Chanhassen Fire Department Report for July 2-8, 2001.
Chanhassen Fire Department Report for July 9-15, 2001.
Letter from Wayne Sames, Minnesota Department of Natural Resources dated
July 8, 2001.
Letter from David M. Jann, Assistant Attorney General dated July 10, 2001.
Letter from Richard Gardner, Minnesota Department of Revenue dated July 6,
2001.
Letter from Theresa Sunde, Mediacom dated July 13, 2001.
Memo and article from Dave MacGillivrary, Springsted dated July 3, 2001.
CHANHASSEN FIRE DEPARTMENT
FIRE/RESCUE'
WEEK OF JULY 2 - JULY 8, 2001
mon
Mon
Mon
Mon
Tues
Tues
Tues
Tues
Tues
Tues
Tues
Weds
Weds
Weds
Weds
Weds
Weds
Thurs
Thurs
Thurs
Thurs
Fri
Fri
Sat
Sat
Sat
Sun
Jul 2
Jul 2
Jul 2
Jul 2
Jul 3
Jul 3-
Jul 3
Jul 3
Jul 3
Jul 3
Jul 3
Jul 4
Jul 4
Jul 4
Jul 4
Jul 4
Jul 4
Jul 5
Jul 5
Jul 5
Jul 5
Jul 6
Jul 6
Jul 7
Jul 7
Jul 7
Jul 8
1:45 PM
3:32 PM
4:36 PM
9:03 PM
1:32 AM
1:45 AM
2:50 AM
5:04 PM
6:43 PM
7:25 PM
8:22 PM
2:20 AM
3:16 PM
4:21 PM
5:04 PM
5:08 PM
9:28 PM
8:18 AM
8:12 AM
11:18 AM
6:29 PM
2:44 PM
11:49 PM
1:39 AM
1:04 PM
8:47 PM
1:50 AM
Galpin Blvd & CresWiew Dr
Pontiac Ln & Chaparral Ln
Hwy 5 & Great Plains Blvd
Bandimere Park
Santa Vera Dr
Kerber Blvd & Saddlebrook
West 82nd Street
Chan View
Galpin Blvd & Lk Lucy
Highway 5 & Highway 101
Excelsior Fire Dept
Marsh Drive
Kiowa Avenue
Arboretum Drive
Lake Ann
Lake Ann
Lake Ann
Park Drive
North Bay Road
Bandimere Park
West 62nd Street
West 78th Street
Mission Hills Drive
Pleasant View Road
Lake Lucy Rd & Powers Blvd
Tecumseh Lane
Great Plains Boulevard
Broken gas line
Assist person off of roof
Car accident with injuries
Medical - asthma attack
Medical - possible stroke
Car accident with injuries
Structure fire
Medical - possible overdose
Medical- head injury from a fall
Car accident with injuries
Mutual aid - stand by
Medical - diabetic problem
Person hit by a car
Rekindle
gas can on fire
Medical - bee sting
Medical - possible broken ankle
Medical - seizures
Assist sheriff's office with search
Assist sheriff's office with detail
Medical - eye injury
Fire alarm - false alarm, no fire
Medical - possible heart attack
Car accident - no injuries, cancelled
Car accident, unknown injuries
Medical - chest pains
Medical - unknown problem
mon
Mon
Mon
Tues
Tues
Tues'
Weds
Weds
Thurs
Thurs
Thurs
Fri
Fri
Sun
Sun
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
Jul
9
9
10
10
10
11
11
12
12
12
13
13
15
15
ll:10AM
11:44 AM
5:35 PM
9:43 AM
-11:15 AM
9:18 PM
4:09 Pm
7:56 PM
8:36 PM
8:46 PM
9:29 PM
5:00 AM
5:46 PM
10:52 AM
4:39 PM
CHANHASSEN FIRE DEPARTMENT
FIRE/RESCUE
WEEK OF JULY 9 - JULY 15, 2001
Kerber Boulevard
Market Boulevard
West 78th Street
Market Boulevard
West 78th Street
Harrison Hill
'West 78th Street
Lake Drive East
Chanhassen Road
Lake Ann Park
Chanhassen Road
Laredo Drive
Highway 101 & HwY 212
Main Street
Lake Minnewashta Park
Diesel fuel spill
Bike accident
Medical - heat exhaustion
Smoke in the building, no fire
Medical - chest pains
Gas leak
Medical- injured shoulder
Medical - seizures, cancelled
Medical - trouble breathing
Medical - head injury
Medical - asthma attack
Fire on tennis court
Car accident- cancelled, nO injuries
Medical - possible heart attack
Missing boater, cancelled, person found
July 8, 2001
Minnesota Department of Natural Resources
500 Lafayette Road
St. Paul, Minnesota 5.5155-4010
--
Mr. Todd Hoffman
Dir. Parks and Rec.
690 City Center Drive
Chanhassen, MN 55317
RE: FY 2001 Local Park Grant Program Application,
Bandimere Park
Dear Mr. Hoffman ·
The review and ranking of the Local Park Grant Program applications has been
completed. This review, which included a careful analysis of each application was
completed by staff of the Local Grants Unit.
Competition for the limited grant dollars available was intense. Only 32 applications, out
of 187 applications submitted, were recommended for funding. Unfortunately, your
application did not rank highly enough to be recommended for funding this year.
If you would like information regarding your application and/or suggestions on how
your proposed project might be revised to make it more competitive, please call
your grants manager:
Joe Hiller at 651/296-4891
Thank you for your interest in the Local Park Grant Program.
Sincerely,
Wayne M. Sames, Supervisor
Local Grants Program
DNR Information: 651-296-6157
An Equal Opportunity Employer
Who Values Diversity
1-888-646-6367 °
TTY: 651-296-5484 ° 1-800-657-3929
Pdnted on Recycled Paper Containing a
MIKE HATCH
ATTORNEY GENERAL
STATE OF MINNESOTA
OFFICE OF THE ATTORNEY GENERAL
July 10, 2001
102 STATE CAPITOL
ST. PAUL, l~hN 55155-1002
TELEPHONE: (651) 296-6196
Ms. Kate Aanenson
Community Development Director
City of Chanhassen
City Hall
690 City Center Drive
Chanhassen, MN 55317
Re: State v. Creek Five Associates, et al.
Dear Ms. Aanenson:
On behalf of the State of Minnesota, I am writing to thank you for the assistance
you recently provided to the State in a condemnation proceeding involving property in
Chanhassen. · I am especially thankful for your willingness to provide assistance with no
advance warning. Not every person would be willing to devote several afternoons of
their time without an appointment or any advance warning. Again, thank you very
much.
Sincerely,
DAVID M. JANN
Assistant Attorney General
(651) 296-6474
AG: 493540,v. 01
Facsimile: (651) 29%4193 · TI'Y: (651) 297-7206 · Toll Free Lines: (800) 657-3787 (Voice), (800) 366-4812 (TTY) · www. ag.state.rnn.us
~n Equal Opportunity Employer Who Values Diversity ~, Printed on 50% recycled paper (15% post consumer content)
MINNESOTA Department of Revenue
Property Tax Division
Mail Station 3340 St. Paul, MN 55146-3~
Phone (651) 296-3155 Fax (651) 297-2'
July 6, 2001
To: School District Superintendents, City Finance Officials of Cities over 500
Population, and Metro Special Taxing Districts
Re: Truth in Taxation Law Changes for Payable 2002
Special Session Laws 2001, Chapter 5, Article 3, Sections 91 and 96 provide the
following changes for Truth in Taxation for levy year 2001; taxes payable in 2002:
Due to the late enactment of the Omnibus Tax Bill and the massive changes
in the property tax system for the taxes payable year 2002, Truth in Taxation
public hearings in 2001 for taxes payable in 2002 are not required. You do
not need to publish or post a notice of a public hearing, nor do you need to
hold a public Truth in Taxation hearing this year. These hearings will once
again be required for taxes payable in 2003 and subsequent years.
The elimination of the requirement to hold a Truth in Taxation public heating in
2001 does not prohibit a taxing authority from holding a Truth in Taxation
hearing if it wants to. If your taxing authority chooses to hold a Truth in
Taxation hearing this year, you should follow the normal procedures for
publication/posting of a notice of a Truth in Taxation public hearing and the
normal procedures for discussion of the proposed budget for payable 2002 (2001
budget in the case of school districts) and proposed property tax levy for payable
2002.
You should not submit a Form TNT-2002, "Certification of Truth in
Taxation - Payable 2002" to the Department of Revenue. Since Truth in
Taxation hearings are not required this year, there is no reason to complete
and submit this form. You may toss the Form TNT-2002 that you previously
received from our office.
Your taxing authority must still submit its proposed property tax levy for payable
2002 to the county auditor by September 17, 2002 (October 1 for school districts).
The county auditor still needs this information to prepare parcel specific notices
of proposed property taxes for each parcel of real property for the taxes payable
year 2002.
Contimted...
An eqtml opportunity employer TTY/TDD: (651) 297-2196
The Truth in Taxation parcel specific notices for payable 2002 have been
simplified. Only one column of tax information for each taxing authority will be
shown on this notice. This will be the proposed property taxes of each taxing
authority for payable 2002. The notice will also show the new state general tax
for payable 2002, as well as the actual total tax for payable 2001 and 2002 and the
percent change in the total tax. For school districts, the mandated school levy
line will show a zero levy due to the state takeover of the funding of this levy
requirement through an expanded school aid program. The parcel specific
notice will also show the telephone numbers of each taxing authority in case the
property owner/taxpayer has questions concerning the proposed property taxes for
payable 2002 shown on the notice. The parcel specific notices are to be mailed
on or before December 14, 2001.
The Commissioner of Revenue is granted authority to modify the contents of the
parcel specific notice as necessary.
Based on information supplied by a particular county, and at the request of
the county board, the Commissioner of Revenue may waive the requirement
for parcel specific notices or modify the form of the notices for a specific
county.
The tax rate increase hearings'and resolutions law (M.S. 275.078) is repealed
effective for levy year 2001, taxes payable 2002, and subsequent years.
County auditors do not have to certify a levy certification tax rate to the
county board and to each city over 500 population this year. In addition,
county boards and cities over 500 population no longer have to hold hearings
on a levy certification tax rate increase and adopt resolutions approving a
levy certification tax rate increase. However, there is a new requirement for
the published Truth in Taxation notices for counties and for cities over 2,500
population for payable 2003 and subsequent years that replaces the tax rate
increase hearings and resolutions law.
If you have any questions concerning this letter, please feel free to contact me.
Sincerely,
Richard B. Gardner
Research Analyst Supervisor Senior
/
07/13/2001 14:15 FAX 15078354567
Mediacom
MEDIACOM
Mediacom LLC
1504 2nd Street S.E,
Waseca, MN 56093
Phone: (507) 835~2
Fax: (507) 835-4!
July 13,200 l
City of Chanhassen
City Manager Scott Botcher
690 City Center Drive
Chanhassen, MN 55317-0147
Dear City Manager Busse,
To improve our service to our customers, Mediacom is planning a scheduled maintenance
for Wednesday, July 18 ( early Thursday a.m.) During the process, it will be necessary to'
disrupt cable service to our customers in Chanhassen. For our customers' convenience,
this is to begin after midnight and we intend to keep this disruption of service to a
minimum.
We appreciate your patience during this process.
Sincerely,
Theresa MV Sunde
Customer Relations Coordinator
North Central Region
Mediacom
07/03/01
14'30 FAX 6512233002
85 I~. SEVENTH PLACE, SUI-I~
SAINT PAUL, MN $$101-2887
6~1-223-3000 I~AX: 651-223.3002
SPRINGSTED INC,
SPRINGSTED
002/008
EXTERNAL MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mr. Bruce Dedang, Financial Director
City of Chanhassen
David MacGillivray
July 3, 2001
Moody's Minnesota Cities Report
I thought the recent Moody's Repot[ on the creditworthiness of Minnesota cities would be of
interest to you. If you have any questions please contact me.
CORPOP~sTE OFFICE., SAI2qT PAUL, MN ·Visj[ otlg websim at www. spdngs[ed.com
DES MOINES, IA · MILWAUKEE, WI · MIN~LIS, MN · OVERLAND PARK, KS * VIRGINIA BEACH, VA · wASHINGTON, DC
07/03/01
14'30 FAX 6512233002
SPRINGSTED INC,
~ Moody's Investors Service
~-- . Municipal Credit Research
May 2001
Speclal Comment
New York
Jonathan North 1,212,,553.1064
Patrick Williams 1.212.553.4940
Adam Goldin 1.212.553,1691
Dianne Golub '1,121,553.0566
Linda Ebrahim 1,212.553.41 32
Steven M_ Levine 1.212.553.4097
Minnesota Cities Exhibit Strong Credit
Qualities That Are Expected To Be
Maintained Over The Long Term
Moody's rates the general obligation, unlimited tax debt of 172 cites and townships in d~e Stare
of 2VLinnesom. Moody's expectation that the solid credit quality of Minnesota cities will continue
is based on the following three pvindpal factors. First, the (:ides benefit from a strong state
economy, which has led to low unemployment rates, as well as growing and diver$ifving tax
bases. Second, t_hey have a demonstrated history o{ generally sound financial positions, exhibit-
lng healthy reserves (~ith a median General Fund balance of 52.5% of General Fund revenues).
Third, the cities generally carry well-struerared debt profile, characterized by rapid amortiza-
tion schedules, and generally above average debt burdens due to significant issuance of special
assessment and mx increment bonds.
The chart below illustrates the rating spectrum, and the median r~ting for Minnesota cities,
which is A3. The rating disn4bution, and A3 median rating for/M2N cities, reflects the fact that
Moody's carries ratings on many Baa credits in Minnesota, whereas in other seates across the
nation, credits of below A rated quality, ofeen go urn'aced or insured without an underlying rat-
ing. ;Hence there is a ~kewing of the dis~bufion both n~tionally and in the state. Since J~nuavy
]996, there have been 53 rating changes, with upgrades comprising' 75% of the total. Tkis trend
reflecto, ~n part, the strong national and regional econorrdc growr, h, which has prompted tax base
growth and sn'engr&ened fi~ncial operations.
. .
Minnesota vs. National City fi.0. Ratings Distribution
25%
20% . . "- i ~
~15%
~%
Aaa A31 Aa?_
Aa3 A1
E~ US Ratings
. -
A2 A3 Baal Baa2 Baa3 Below
ITIV,
Grade
~ MN Ratings
..
c~rinned ~ page 3
[~003/008
07/03/01
14'30 FAX 6512233002
SPRINGSTED INC.
004/0O8
Minnesota has enjoyed a strong economy over the past several years, largely th& res~Jt ora diverse econo-
my, favorable demographic trends, and healthy income growth and employment trends. While more
heavily represented in certain areas, the employment mix among sectors closely mirrors that of the coun-
try overall, making for one of the more diverse economies among the state~ Manufacturing as a percent of
the total non-firm employment has declined from 23.9% in 1960, to 16.5% in 2000. While the overall
decline in reliance on manufacrm-ing has allowed for confnued economic diversity, the indusu-ial sector
remains strong compared to the relative decline in other areas of the country, specifically in such areas as
instruments and industrial machinery, as well as resource-related sectors s~ch as paper and food.
Minnesota vs. National Population Growth
20% -
10%
8% -- ,
4% "-
:2%
O%
1950 19B0 1970 1980 1990 ~000
--.m-- Minn~mta .-4r,-- U,$,
. .
The state has steady positive net migration
patterns, and annual population growth rates that
keep pace with the national growth trend, while
outpacing the region. Historically a wealthy state,
Minnesota's personal income per capita has
grown over the years relative to the LT.S., from
102.2% &the U.S. figure in 1990 to 107.9% in
1999. This ranks the state second among its
North Central neighbors for personal income per
capita and first in personal income growth during
the 1990s. As a result of the national economic
boom that has defined the last decade, tmemploy-
ment rates have continued to decline. At 2.8%,
2000 unemployment marked the third consecutive
y~ar that Minnesota logged an unemployment
rate below 3%, compared to the U.S. rate 0f4.0% in 2000. Through the 1990s, Minnesota maintained
so]id employment growth, despite the tight labor market.-From 1990 to 1999, the state's non-farm
employment growth of 22.5% outpaced the national rate of 17.6%~ These strong economic and wealth
trends have resulted in the appreciation of property values, which has benefited local communities via
expanding tax bases.
Moody's Special-Comment ~
07/03/0~
14'30 FAX 6512233002
SPRINGSTED INC,
005/008
The local sales and use mx in Minnesota has limited scope, with only twelve municipalities currently
imposing chis type of tax. The imposition of a local sales tax is generally prohibited by s~amte, unle, s
enabling legislation allow~ it. For a eiry (or' coanw) to impose a local sales tax, it firsu must pass a resolu-
tion indicating a desire to impose one and request enabling legislation from the state. Legislative authority
must then be provided by the state, with the final approval subject to voter referendum at a general dec-
t/on. As of December 2.000, the legislature has authorized 22 entities to impose the tax since 1973, with six
of these failing ro gain voter approval. The revenue is limited in use to specific capital improvements
which must be identified at lea~t 90 days before the referendum (,ce chart for llst including rates and pur-
pose). Most recendy, residents of St. Cloud approved a halt-cent sales tax for improvements to r_he city
library and r_he Sr. Cloud Regional Airport While ~my additional source of revenue is beneficial, Moody's
notes that the revenue stream is dedimted to specific capital projects, and only broadens financial flexibili-
ty to the extent that ocher revenue streams are not needed to finance capital expenditures.
......... ,~ ....... ,' '~..- , .," . . .,~,~', %-~ ~,,' .... · .,'"-~','~,,'m ~L,..¢, 1.' '~.'
· , ..... ',,,v, %,%,, ",'.,~ :,"',' .... ~',",,~ -~¢.. ,' ,,' ,:_,: ,'.'.t &.' ,'c'~:,:,g!<;~:'g~ w%,,¥:;'.,'.~.~ ",~.., ,s'4' ,',',', ', ;,"-,. ,?~is',~I, ;.~.5:l}:,,.~,' '... ',,' .,' ~',~'\i
' "" ..... ' '~" ' 7:'-' ::" ,Year ~lJ~fiZL"d:J,' ~.;',:!?~Ral:e~','?'h'L~.'p¢ '~'. :~,~,Y,e'.m,'~e~nue,:~.~,~" ' :: ,,',',.',,~",r,',~ ,',/' ',:.'~:'~',~,,'.h.~ ,~'.'?, ~.,::,,.,.:c
,'T~xm§ Jur. L~hctmn '.'.'"'.'."':. ..... . , ,.. , ,
· .. · ',:." , .-~ · . · ' ,, ' '. '. '.",",' '".~ ~' ~i:¢?:.,~ '!i,,;~,",. ":~,L, ,, ~., ,..,: ,,,,.; ;~ , ;... ,. ;. ',.? ,,.,,, ,,.. ,~.,:;,;~;?,.',.'.,.,,, ,,..,',,,,,,"-::
Duluth. ..,' ~ '", , . ' , ']97,~ ..:?~0~.,.',,'..~.,.',.' ,.Various.., .,,. ....... ; ....:,~ ,,:~ ..... ~..,,.~ ........
$~. 'P.a'0 %: i ;,, .... ' ' ' , :1993. ' ' ",'i':B'.$~/d" "'!. :I ...';~.,:¢L'4B%. '~vi'~2~en~m~6z~,/,~ ~Yi~,~l~.~.~,.~',~,~},.~.'; ~::~,¢~.P('
· ," ' · '
~cook'Counr~''' ' " 1993'. ' '' "l~07/,~'''~'' :?" ":CookCouhtV'hosptml,and'North~hov~JJ:~T~.~enl:~'~<":'
w'''~'' ' , ' '' ,
' He/ma'nmwn' · , , ,'1996' , ' 0,5%:: k";:' ':, 3.spomficur~..~ucture. pr~j~¥' '.,,,?, ,u,,,, :.,?.: , :',..~::
· Willmat' , '" '1997'
] 998 '
'~woJ-~at'L~fs ' ; ": ; '., ·: . -. P . . , .... ', .., ~,~,. , ',.,'~,,w,,,"~"..~,.,'
· ,. , , . ,. , ,,.., ,
Wmona ....... t 998 .... 0,5%
' ' ' · · "
Proctor '. .... . , ,1999 .... 0"~,%¢'': , ;', .~',, .... ¢J3. 'mmu'nl, ~' 'ff. eht~, and ~tre. ets., ;,'{,~:j~ I%,.~.,(~ i'.;~.~~.'.,,, ,., , . ~.~. ,.,'-~.:;',"
.... . -- , ~
~ew UIm 1999 .... . · '.::0~5~;!~,"<,..",,:',, ', ,, .C~wcand.~ommunlt,/~Center, . ,' .,~,,,,,¢,!/,..,~,~,.,..,,,..',~, ,',...~..v
..... - .................. ' .... -..'--'-~;~.,-,'--~,'.-~-;"~" .'.-,4,~. -- ' .....: '.~":~'~-':r,'4' :~: '"'~.
.............. ~ , , · .... , ,. , '
Fo~ more io/orm~llon plere~e see ww~.houml~em, mn.~~{~[i~,4,,.,,;j ...,: ~,j .... r ' ~.'" ' ;' ';/' '~. ~J;:L<-5' 'I[;'??.~¥.~ ....... """i':':'
" ~ ',' -~u ~, ~ r' ,'r:.'~., · ,~\ ?; _ ~ ' ' , ' . .~ i,h ,' , ,~.~ ,, ~ ~,.,, ' ~, ~ ~. ' ,, :, ~ ., ..
· , ' ' ' ' ,' ' . ', · "~ ", ' "~2,,. "'""'~',f" ' ,~,t"."~ .,4,,..,,. ~ , . . _ , · , ._. . · , ,
'. ~ ,.,, ~;;., , . , ',
' ,, · .,,,,,iku ~,~, ,L, ,,.., :., ,.:. ,.~
,. ;'.-I-he",~]n~e, Sota State·
~' ~i~
,:t, 02,' ' ';~
..
:
'" A'nn'i
.,
· . ~:~a~.--"--~.,'1i32i01
li~'~ :in ,the ffa~0nRe" T~ :,Rel
y:qp
:of'.,me ,-.i'h':'h
.{A~ ~n'd iJak~'[Ba~l] ,C0, ugt, je~,';.d~'est:of
ai3d,' its ,,surrounding ~'rea);'
.[A2j ,,,and,.${::Loui~i;;[A2. ].Coqntjes (except, ,~.,
po'.~'i~b0~v,,,of, ~itkin'[Bagl,],.'Qro,~ Wing [.A2.],' a ~untie$. T:hcprogmm Was,.'~,'
' deddr~d(:'~nbon~titufiodal by 'a 16, wet cb~Jn,,J6 ~ber 2e0d, .but'.'subsequ&ntly.( ,A~il;',2d0!)'such"
· . ~.,, . · ' ", . i- ,, ' ' ' .. ';,, ~ , . ,. . ¢. · . . , ,.., . .., ~, . . .
ruling was oyertumed,by,the"MN court of' .i~.,,',',~,:.. ,':'i ' ",' ' ", ,,' · ' ';'::',":. ': ' '"', .,'v , '..',:
., .' ,".' ".':'L,'"'" .,' ' ,:" ,,. ;" , '. . · ', . .~,"'¢~"" ', , ' · " ' ' - ' .' ' ' "' ,' :'~, ,',,',"~' ' "'" ,'- .' ,
, Moody's'believes',tHat' the ourrent, .(SngOi'~'g~ credit'impact'of' these'laws :ms mm~mal;'as,c[bes'.' ,'
· . . , . ,. ~ , , , ,,,, .. ,,- , , , · ·. . ' . , ,. ; ,, , , :,,. ,t..\ ,,_ . · · . . ,,:'..,'
:have; effectively managed 'and budgeted 'ferJ. e~t. het..'the net c~)ntr, ibutfon'or, rece]Pt.'pf add~tlona! ·
pr.~pe,d:9 ::t~x.'le,.vy ..,re? :nearly three decadeS,;in,.th',e,. "l'W,'in :Cities,' and,, five' years:in 'the. ~ren 'Range..
However,'~tagnant, '.,growth' commfinities 'wff'h 'Td.w' .prO~,ert'y' value ',per c'a~'i~a ,:dO .~e~efit from
. : , · '' , t, ' ' , , ~ ' . ' ;"..-,','. ' -,'..
this,:-pr, o, gram: ,... · r ,, '",',:',,.',, .' ,' " "'_ '
Moody's Special Comment 5
07/03/01 14'31 FAX 6512233002 SPRINGSTED INC, ~006/008
,; 1.
':'i;.3., ue. 'an: aggr'eg-",,,,
The expectation of continued credit strength is
derived from many of the credit fundamentals high-
lighted in this report. Mobdy's expects that the rela-
tively strong and diverse state economy should con-
tinue to positively impact tax base appreciation and
expansion, with diversification providing a buffer
against a possible economic deceleration.
Additionally, continued trends in sound financial
operations and ongoing use o£ favorable debt ~cruc-
tums, despite .typically high debt levels, will maintain
the overaU strength in credit profile.
Credit Strength Derived From Typical
Rapid Principal Amortization And 105%
Payout is generally rapid, with more than 50% o£
the principal typically amortized within mn years. In
general, Moody's views rapid pay'out favorably, as it
provides a d~bt service strucnn~ by which an entity
can more easily layer additional debt in the future,
providing long-term, capital financing fleaa'bility.
Rapid amortization also evidences willingness to
pay by current residents, as well as mitigates the risk
of taxpayer resistance in the out-years to pay for
capital projects that have since become outdated.
Similarly, Moody's takes into account the bond
maturity, relative to the expec~d life of the financed
project. With characteristically rapid payout, debt
service tends to account for a hr~ portion of the
operating budget, which in some instances can
reduce overall financial flexibility due to increased
fixed costs. I-Iowewr, special assessment supported
debt is frequently pre-paid, thus providing for debt
serei~ resexves sufficient to cover some future debt
service requirements. Additionally, state statutes
require that levies for debt service he at least i05%
of the actual debt service requirements (net of
ext~cted other revenue sources) to allow for &lin-
qukndes or non-collection. Moody's believes this is
an overall credit strength. Some cities have diverted
the excess revenu~ collected into a Closed Bond
Fund, which, subject to council approval, can he
used for opm-a~g purposes.
..
~'~, ' h'., ".-',~' 'j' ' ' ...... (";~ "- ''t' ....
'.',',,'"" -' :"::'"':" ; ' ",
· , ~rtell.;Example of :GO,State Nd
,; ,, ,:' .:,, · . .,.:,.. ,~. -,, ,,.,;,.g...,,,,;?-0-~.
':,' ,: ,atari Prov,aing,Cred,til~nha,,n,~ement:~i!
'.' ,', ".,',' ': ':t;' :' '~" ' ~ ".%",,:'.,?;:.-%':-',
· · ,., , *,.,~' .... ~,..~. . .~,' ~:) ~ ,-i , : ) .,,.r,
' ',. nh. de,'b~n,~'!,i3. O'U la?,' ',~.e.:bt .~{ ,A. j3fl.'[~ ~}
, ,, , ., 't . ', :.; .' , .'~ .. ,~ 1.' ~.~ ,, .. t,. .
-.
' '"'"
s, ufficjent to,]3a.' y:d~U~ seryic~-,,will
· IV ,fl:or~ the slate'js'.Commissio'aer, of 'Fih~hci~'~:'
· t. fi;-i, he city, .' The, ,A3 rati~g.,refl,~e~.. '-the)add;~,
,,tic'al security ;provide~J ;b~ ,the' c'[b/'~'st~t~"~ia';::.
ailotmen, t (als0 see:city o~ G'len~.e),
· ',- '.,.' -' .,.",'-.:, .-, "'7' ,"" '.:':."- ,',
Moody's Special Comment 7