2009-09-09 CC Agenda - Laserfiche WebLink

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Draft Draft Draft City's response: We appreciate the warning, but it implies that the City may not be adequately considering economic conditions or financial health of the city in making its decisions. In response to these very concerns, the City Council downsized the project from its initial proposal by about half, and the Council considered current favorable bid climate and low interest rates as significant factors in its decision. The city received a very strong "AN' bond rating from Standard & Poor's on the bonds issued to finance the improvement. We quote from the rating: "The 'AA' long-term rating assigned to Centerville, Minn.'s general obligation (GO) improvement bonds is based upon the following rating factors: . Access to employment throughout the large and diverse Minneapolis-St.Paul area, . Economic indicators that are all better than national averages, . Financial performance Standard & Poor's Ratings Services considers to be very strong, and . Financial management practices we consider to be good." 6) City Indebtedness Audit comment: "City of Centerville was within the statutory legal debt limit.... The legal debt limit is separate from the practical limit of the city which is the debt burden beyond which the credit-worthiness of the city is put into question." City's response: While the caution that is contained in the comments is noted, it again implies that the City may not be adequately considering its overall debt or its ability to manage that debt. The City's debt burden, far from being "put into question," is well within manageable limits as demonstrated by the very strong "AA" Standard & Poor's bond rating. The Council approved the policy changes identified in items 1 & 2 at its meeting on September 9, 2009. Please let me know if you have any questions on the City's responses. Very truly yours, For the City Council Mary Capra, Mayor 48