Agenda - Council - 12/08/2020 - Laserfiche WebLink

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The rating also incorporates our view of the health and safety risks posed by the COVID-19 pandemic, which we consider social risk factors. Although the scope of economic and financial challenges posed by the pandemic remains unknown, we believe a prolonged disruption could weaken the city's local economy. Absent the implications of the pandemic, we consider Ramsey's social risks to be in line with those of the sector. We also view the city's environmental and governance risks as being in line with our view of the sector. Stable Outlook Downside scenario We could lower the rating if, due to budgetary imbalance or planned drawdowns, available reserves materially wea ken. Upside scenario Although unlikely, in our opinion, a higher rating is possible with continued growth and diversification of the city's economy to levels commensurate with those of higher -rated peers, coupled with moderation to the city's debt profile. Credit Opinion Very strong economy We consider Ramsey's economy very strong. The city, with an estimated population of 27,050, is located in Anoka County in the Minneapolis -St. Paul -Bloomington MSA, which we consider to be broad and diverse. The city has a projected per capita effective buying income of 112% of the national level and per capita market value of $103,925. Overall, the city's market value grew by 7.4% over the past year to $2.8 billion in 2019. Ramsey is approximately 20 miles north of Minneapolis in Anoka County. City residents benefit from proximity to the Minneapolis -St. Paul -Bloomington MSA, as reflected in Ramsey's strong incomes and extremely strong market values. While most residents commute throughout the MSA for employment, several sizable employers are located within the city itself, including Life Fitness (460 employees), Vision -Ease Lens (300), and Connexus Energy Utility (250). The city's tax base is predominantly residential (66%), followed by commercial/industrial (20%). Residential growth in Ramsey has been strong in recent years and has led to steady increases in market value. We expect this positive valuation trend to continue based on recent building permitting trends for new residential and industrial developments.