THE CITY OF JORDAN, MINNESOTA EARNS Aa3 RATING UPGRADE
Moody’s Grants a Credit Rating Increase
Jordan, Minnesota – The City of Jordan is pleased to announce that Moody’s Investors Service (“Moody’s”) upgraded its long-term rating on the City’s obligations to Aa3 from A1, based on a review completed in conjunction with the release of Moody’s US Cities and Counties Methodology. The rating was released on January 5, 2023. A higher credit rating will result in better interest rates for bonded debt. The upgrade was assigned by Moody’s, which noted the entity’s financial operations have been very strong and that this rating reflects very strong wealth and income levels and a history of largely positive general fund operations with strong reserve levels.
The city’s management practices are considered “good” under Moody’s, indicating that the management budgets conservatively, estimates building revenues conservatively, updates the Council on budget-to-actual performance monthly, amends budgets as needed, and has a formal reserve policy to maintain a general fund balance equal to 55% of the next year’s budgeted expenditures plus twice any expected state aid. A Financial Management Assessment of “good” also indicates the City has a formal five-year capital improvement plan and various approved formal policies related to the use of debt for different needs.
Paul T. Steinman, BakerTilly, St. Paul, Minnesota, the City’s financial advisor, noted the following: “This upgrade represents the hard work of staff and the City Council in maintaining a long-term vision of fiscal prudence and responsibility.”