Agenda - Council - 09/28/2021 - Laserfiche WebLink

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Summary: Ramsey, Minnesota; General Obligation Environmental, social, and governance (ESG) factors We analyzed Ramsey's ESG risks relative to the city's economy, management, financial measures, and debt and liability profile and determined all are in line with our view of the sector standard. Stable Outlook Downside scenario We could lower the rating if, due to budgetary imbalance or planned drawdowns, available reserves materially weaken. Upside scenario A higher rating is possible with strengthening of multiple credit factors including moderation to the city's debt profile, higher incomes, and enhanced financial policies. Credit Opinion Growing residential tax base, with access to the Twin Cities MSA supports a strong economy Ramsey is approximately 20 miles north of Minneapolis in Anoka County. City residents benefit from participation in the Minneapolis -St. Paul -Bloomington MSA, as reflected in Ramsey's good 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); Connexus Energy, a utility (250); and Hoya Optical Labs, an optical goods manufacturer (230). 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. Management reports no significant business closures or layoffs resulting from the pandemic among large area employers. In 2020, the area unemployment rate averaged 6.3% throughout the year, just above the statewide rate of 6.2% and below the national rate of 8.1%. Over upcoming years, we expect the city's economy will remain stable given Ramsey's location in the growing Twin Cities region. (For our latest U.S. economic forecast, see "Economic Outlook U.S. Q3 2021: Sun, Sun, Sun, Here It Comes," published June 24, 2021, on RatingsDirect.) Strong management, with detailed long-term planning for operations and capital improvements Highlights of Ramsey's financial policies and practices include: • Reference to four years of historical data, outside data sources, and line -item estimates during budget development; • Monthly budget -to -actual reports to the council, with a budget that can be amended as necessary throughout the year; • A five-year financial forecast, updated annually; • A 10-year capital improvement plan, updated annually; WWW.STANDARDANDPOORS.COM/RATINGSDIRECT SEPTEMBER 21, 2021 3