Moody's Investors Service has assigned an Aaa rating to the City of Eagan for the sixth consecutive year. Eagan’s tradition of sound financial management has enabled the City to achieve Triple-A credit ratings from both Moody’s and Standard & Poor’s. Less than 10 percent of cities receive Triple-A ratings.
“Eagan has an exceptional credit profile anchored by its large economic base near Minneapolis with high resident incomes and relatively low unemployment. Its stable operating history has resulted in very strong reserves and a moderate debt burden. The city's primary credit challenge is its above-average pension burden relative to operating revenue.”
“The stable outlook reflects our view that reserves will remain healthy given the city's strong economic base and prudent management. The city continues to see substantial economic development, and management reports another operating surplus for fiscal 2020. A modest draw is budgeted for 2021, though management typically outperforms its budget. The agency stated Eagan’s strengths as a large affluent tax base and strong operating reserves.”
The Triple-A rating means that the City of Eagan is fiscally strong, and can borrow money at a lower rate, which is an advantage when investing in long-term expenses for the City. The City’s rating specifically impacted the borrowing rate at which the City was able to leverage capital for the City Hall, Police Station, and Central Maintenance Facility upgrades. The high rating will also allow for better borrowing rates for future infrastructure needs.
“Our fiscal responsibility as a city is a key ingredient to our community’s success and how quickly we will turn the corner economically out of this pandemic” shared Eagan’s Mayor Mike Maguire. “Our financial consistency and stability have helped drive our robust and diverse local economy including through COVID-19 by providing businesses the confidence to invest in, and/or expand in Eagan.”
“As a city, we know our financial strength is because of the partnership between the city, our residents, and our businesses,” stated Maguire. “And over the past year, our community has counted on us more than ever to do our job as the City of Eagan, to balance all of our interests and maintain a mutual trust to keep our successful city and strong community moving forward.”