City of Platteville Assigned "Excellent Rating" from
Moody Investor Service Rankings
by David Berner, Platteville City Manager
At the Common Council Public Hearing concerning the options identified to address the long-term facility needs, concerns were expressed about the financial capacity of the city to pay for the improvements that are being considered.
A recent analysis by Moody Investor Service of New York concerning Platteville’s 3.17 million water and Sewer Revenue Bonds is a good independent report of the city’s financial condition. Moody’s has assigned an MIG 1 rating to the City, an excellent rating, on the bonds that will finance the Water and Sewer Utility’s 2008 Capital Projects. In their report they noted the moderate 507 million tax base has grown at a 9% five year average annual rate, “This growth can be attributed in part to annexations. The city recently annexed 500 acres in order to expand the industrial park. The city is also experiencing commercial and residential growth; a new Menard’s has opened along Highway 151, a four lane highway, and recently developed subdivisions are providing new housing options. The University is the city’s largest employer with approximately 800 employees and is undergoing a 100 million renovation. The school has approximately 7,000 college students, more than half of the present population.”
Satisfactory financial operations are expected to continue. Moody’s noted that while the notes are outstanding, the system will maintain satisfactory financial operations and sound liquidity due to “healthy growth in the customer base and a history of conservative financial practices by management.”
Moody concludes that Platteville’s modestly-sized tax base, ongoing growth and the University of Platteville, provide a measure of stability. With modest debt levels and limited additional borrowing plans, the city is well-positioned financially to address facility and infrastructure needs.