Ehlers PNG

PRESS RELEASE
May 3, 2011

For Immediate Release
Contact: Tim Schram
Ehlers
800.697.8500
tschram@ehlers-inc.com

 

Moody's Assigns Aa3 Rating to City of Monroe
Sound Financial Operations and Healthy Cash Reserves Cited as Bolstering Credit Rating

 

BROOKFIELD, WI - May 3, 2011 - Citing conservative budget practices and its ability to maintain a healthy fund balance despite the economic downturn, The City of Monroe has been affirmed a Aa3 rated community by Moody's.  The City's healthy reserves put it in position to deal with reductions in state aids and other proposed changes included in the State budget proposals.

 

Assignment and affirmation of the Aa3 rating reflects the city's modestly-sized tax base that serves as a retail and economic center, sound financial operations supported by healthy cash reserves, and an average debt profile with substantial contributions to debt service from alternate revenue sources. The rating benefited the City of Monroe's sale of $1,105,000 in General Obligation Street Improvement Bonds, with financial advice from Ehlers, on Tuesday, May 3, 2011.  Ehlers conducted a competitive bond sale on behalf of the City. A total of 3 bids were received with Baird submitting the winning bid with a True Interest Cost of 3.8984%.

 

"The bonds are secured by the City's General Obligation (GO) unlimited tax pledge and proceeds will be used to finance street improvement projects on 8th and 9th Streets," states Phil Rath City Administrator. Rath observes, "The institutional presence of Green County government and a campus of Blackhawk Technical College lends some stability to our local economy."

 

Cathy Maurer, Comptroller for the City of Monroe adds, "Healthy reserves provide flexibility to absorb

potential cuts to state aid and allows the City to fund a portion of the 8th and 9th Street project costs with funds on hand.  In addition, our reserves help distinguish the City among its peers in our rating category, that on average, have a larger tax base than the City."

 

The City's Aa3 rating means the City's capacity to meet its financial commitment on the debt obligation is very strong. The Aa3 rating is just three levels below the highest rating assigned by Moody's, Aaa.

 

According to Moody's, approximately 85% of the city's outstanding GO debt is paid for from revenues generated by the city's Tax Increment Financing (TIF) districts and the sewer utility. Amortization is average with 65% of principal on the general obligation bonds retired in ten years. All of the city's outstanding debt is in fixed rate mode, and the city is not a party to any interest rate swap agreements.

 

About the City of Monroe

The City of Monroe is the county seat and the largest city in Green County. Monroe is very fortunate to have numerous facilities and opportunities available here to add to the "quality of life." There are many parks, recreational facilities, and a state-of-the-art senior citizen center. Numerous social and cultural events are offered by the Monroe Arts Center. Post secondary educational opportunities are available at the campus of Blackhawk Technical College, and outstanding healthcare is available at the Monroe Clinic. To learn more about the City of Monroe, visit http://www.cityofmonroe.org/.

About Ehlers 

Ehlers, an independent public finance advisor for over 50 years, is ranked third nationally in number of competitive sales advised since  (Source: Thomson Financial: 1-888-989-8373). Our goal is to expand public sector clients' horizons and achieve practical solutions at the lowest cost to taxpayers. Our only allegiance is to the communities whom we serve. Our success is the result of established long-term relationships, hard work, and years of experience. Ehlers works with counties, cities, townships, school districts, agencies, and other governmental units to build better communities through the products and services we offer: Debt Issuance Services, Economic Development and Redevelopment, Financial Planning, and Management, Communication and Public Participation. Visit http://www.ehlers-inc.com/index.php for more information.

 

 

# # #

 

 

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are subject to significant risks and uncertainties that are difficult to predict. These forward-looking statements cover, among other things, statements made about general economic and market conditions, our current deal pipelines, market share gains and trends, the environment and prospects for capital markets transactions and institutional brokerage activity, anticipated financial results (including expectations regarding revenue and expense levels, the compensation ratio, return on shareholders' equity, and our quarterly run rate for non-compensation expenses), liquidity and capital resources, inventory positions, share repurchase plans or other similar matters. These statements involve inherent risks and uncertainties, both known and unknown, and important factors could cause actual results to differ materially from those anticipated or discussed in the forward-looking statements. Forward-looking statements speak only as of the date they are made, and readers are cautioned not to place undue reliance on them. Ehlers undertakes no obligation to update them in light of new information or future events.