May 3, 2010

Moody’s Investors Service has announced that it has assigned its “Aaa” rating to the general obligation bonds for Burnsville (MN), the highest bond rating available and an upgrade from the city’s previous rating. The action comes as a part of an overall recalibration of U.S. municipal ratings by Moody’s, an action that could impact cities across the nation.

“Burnsville and cities in general are committed to financial policies that maintain our financial health, especially during these challenging economic times,” commented Burnsville Mayor Elizabeth B. Kautz, President of The United States Conference of Mayors. Last May, the Burnsville city council made a permanent $3.5 million budget cut and followed up with a zero percent property tax levy increase for 2010. The “Aaa” rating is important because it allows the city to borrow money at lower interest rates.

The upgrade in Moody’s rating for Burnsville is part of a widespread “recalibration” to compare state and local governments with all categories including corporations, non-profits and asset backed securities. Previously, Moody’s noted Burnsville’s affluent and diverse local economy, historically strong financial position and manageable debt burden as factors in the rating process. In particular, the Moody’s commented that Burnsville’s conservative policies regarding use of debt and its impact on property taxes by stating that, “Over 80 percent of the city’s debt is supported by tax increments, special assessments, and utility revenues significantly reducing the impact on the general tax levy.”

More information on the city’s finances is available on www.burnsville.org.