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Diana Lund <br /> <br />From: <br />Sent: <br />To: <br />Subject: <br /> <br />Moody's Investors Service [epi@moodys.com] <br />Thursday, December 08, 2005 9:35 AM <br />Diana Lund <br />Ramsey (City of) MN <br /> <br /> MOODY'S ASSIGNS AN A1 RATING TO THE CITY OF RAMSEY'S (MN) $755,000 GENERAL OBLIGATION <br />EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2005C AND $1.035 MILLION GENERAL OBLIGATION <br />TAXABLE TAX INCREMENT BONDS, SERIES 2006A <br /> <br />A1 AFFIRMATION AFFECTS $15.2 MILLION OF PARITY DEBT, INCLUDING THE CURRENT ISSUE <br /> <br />Ramsey (City of) MN <br />Primary & Secondary Education <br />Minnesota <br /> <br />Hoody's Rating <br /> <br />Issue Rating <br /> <br />General Obligation Equipment Certificates of Indebtedness, <br />Series 2005C <br /> Sale Amount $775,000 <br /> Expected Sale Date 12/13/05 <br /> Rating Description General Obligation Unlimited Tax <br /> <br />A1 <br /> <br />General Obligation Taxable Tax Increment Bonds, Series <br />2006A <br /> Sale Amount $1,035,000 <br /> Expected Sale Date 12/13/05 <br /> Rating Description General Obligation Unlimited Tax <br /> <br />A1 <br /> <br />NEW YORK, December 8, 2005 -- Moody's Investors Service has assigned an A1 rating to the <br />City of Ramsey's {MN) General Obligation Equipment Certificates of Indebtedness, Series <br />2005C, and General Obligation Taxable Tax Increment Bonds, Series 2006A. Concurrently, <br />Moody's affirms the A1 rating affecting $15.2 million of outstanding parity debt, <br />including the current issues. Both issues are secured by the city's general obligation <br />unlimited tax pledge. Proceeds from the sale of the certificates will be used to finance <br />capital equipment purchases, while the bonds will fund the acquisition of property for <br />redevelopment purposes within the City's Tax Increment District No. 1. The A1 rating <br />reflects a trend of strong annual growth in taxable value; sound management characterized <br />by ample reserves; and manageable debt burden mitigated by non-levy support. <br /> <br />CITY BENEFITS FROM PROXIMITY TO TWIN CITIES METROPOLITAN AREA AND AVAILABILITY OF LAND <br /> <br />Located 25 miles northwest of Minneapolis (general obligation rated Aal), the city has <br />experienced strong growth due to its location near the twin cities metropolitan region, an <br />accessible transportation network, and continued commercial and residential expansion. The <br />city's $1.9 billion full valuation has experienced rapid growth averaging 14.5% annually <br />over the last five years, resulting in a significant full value per capita of $102,337. <br />This tax base growth reflects residential construction and a growing population; <br />population increased nearly 20% from 2000 to 2005. Building permit activity remains <br />strong, and the city expects between 500 and 800 new housing units per year. The planned <br />7'own Center project, a 300-acre mixed use development which includes approximately 2,400 <br />new housing units, will be built over the next three to five years. The city's income <br />indices remain high, with median family and per capita income levels that are 125% and <br />112% of the state values respectively, in addition to a median home value at 117% of the <br />statewide median. The development of the Northstar Corridor, a commuter rail connecting <br />the Twin Cities and St. Cloud, is expected to have a stop in the neighboring city of Anoka <br />and possibly the city itself. Moody's believe this will prompt further development as <br />transport patterns shift. It is expected that the short-term pressures related to expected <br /> <br /> <br />