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Summary: <br />Ramsey, Minnesota; General Obligation <br />Credit Profile <br />US$1.735 mil GO street reconstruction buds ser 2016A dtd 07/21/2016 due 12/15/2026 <br />Long Term Rating AA+/Stable <br />Ramsey GO <br />Long Term Rating <br />Ramsey GO <br />Long Term Rating <br />Ramsey GO <br />Long Term Rating <br />AA+/Stable <br />AA+/Stable <br />AA+/Stable <br />New <br />Affirmed <br />Affirmed <br />Affirmed <br />Rationale <br />S&P Global Ratings assigned its 'AA+' long-term rating to Ramsey, Minn.'s series 2016A general obligation (GO) street <br />reconstruction bonds. At the same time, S&P Global Ratings affirmed its 'AA+' rating on the city's outstanding GO <br />bonds. The outlook is stable. <br />A pledge of the city's full faith, credit and taxing powers to levy ad valorem property taxes without limitation as to rate <br />or amount secure the series 2016A bonds. The city also pledges special assessments levied against benefitted <br />properties. Our rating is based on the city's full faith and credit GO pledge. We understand officials intend to use the <br />proceeds to finance street reconstruction and overlay projects associated with the city's five-year plan. <br />The 'AA+' rating reflects our assessment of the city's: <br />• Strong economy, with access to a broad and diverse metropolitan statistical area (MSA); <br />• Strong management, with "good" financial policies and practices under our financial management assessment <br />(FMA) methodology; <br />• Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level <br />in fiscal 2015; <br />• Very strong budgetary flexibility, with an available fund balance in fiscal 2015 of 67% of operating expenditures; <br />• Very strong liquidity, with total government available cash at 3.9x total governmental fund expenditures and 21.8x <br />governmental debt service, and access to external liquidity we consider strong; <br />• Adequate debt and contingent liability position, with debt service carrying charges at 17.8% of expenditures and net <br />direct debt that is 184.2% of total governmental fund revenue, as well as low overall net debt at less than 3% of <br />market value and rapid amortization, with 66.1% of debt scheduled to be retired in 10 years; and <br />• Strong institutional framework score. <br />Strong economy <br />We consider Ramsey's economy strong. The city, with an estimated population of 25,299, is located in Anoka County <br />in the Minneapolis -St. Paul -Bloomington, MN -WI MSA, which we consider to be broad and diverse. The city has a <br />WWW.STANDARDANDPOORS.COM/RATINGSDIRECT JUNE 22, 2016 2 <br />1661625 1302450320 <br />