City of Chanhassen
7700 Market Blvd
PO Box 147
Chanhassen MN
55317
952-227-1100
Fax: 952-227-1110
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City of Chanhassen Receives
Highest Bond Rating of AAA from Standard & Poor's
May 7, 2009
The City of Chanhassen received a credit rating upgrade (from AA+ to AAA) from Standard & Poor's, a provider of independent credit ratings. This rating increase reflects, "The City's stable financial operations, very strong reserves, and 'strong' financial management assessment (FMA)." Standard & Poor's revised its financial management assessment to "strong" from "good" due to additional information it received on the city's management practices. A financial management assessment of "strong" indicates financial practices are strong, well imbedded, and likely sustainable. This is the third credit rating upgrade provided by Standard & Poor's for the City of Chanhassen in the last five years. The AAA rating is the highest rating offered by Standard & Poor's, and only ten cities in the entire State of Minnesota have this rating.
Mayor Tom Furlong was quoted as saying, "We are proud to receive this credit rating increase, which is a confirmation that Standard & Poor's recognizes the significant financial achievements that the City of Chanhassen has realized through the combined leadership of the Chanhassen City Council's fiscal and tax policies and the city staff's sound fiscal management. We are grateful to all who have played a part in achieving this recognition."
The City requested a review of its credit rating in advance of its upcoming bond sale for the refunding of the 2005 MnDOT loan and 2006A General Obligation Improvement Bonds. The higher bond rating of AAA is expected to save Chanhassen taxpayers hundreds of thousands of dollars in interest costs in future years. The bond rating upgrade helps to ensure that future Chanhassen debt will be issued with the lowest possible interest expense and costs to the taxpayer.
The City Council established a goal to provide financial stability and the resources necessary to exercise financial stewardship, implement best practices, and utilize long-term financial planning tools to ensure that Chanhassen residents are receiving excellent public services. This bond rating upgrade meets this goal of strengthening the city's financial position.
Click HERE to view the Standard & Poor's Rating Summary for the City of Chanhassen in pdf format.
For more information, contact Todd Gerhardt, City Manager, City of Chanhassen, 952-227-1119 or email at tgerhardt@ci.chanhassen.mn.us
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