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Moody's Ratings U.S. Public Finance
<br />Key indicators
<br />Exhibit 1
<br />Lake Elmo (City of) MN
<br />2021 2022 2023 2024 Aa Medians
<br />Economy
<br />Resident income ratio (%)223.4%205.2%186.9%N/A 114.1%
<br />Full Value ($000)$2,207,110 $2,603,158 $3,073,351 $3,427,499 $2,888,367
<br />Population 11,237 11,861 12,504 N/A 22,430
<br />Full value per capita ($)$196,415 $219,472 $245,789 N/A $125,640
<br />Annual Growth in Real GDP 5.8%2.0%2.0%N/A 2.0%
<br />Financial Performance
<br />Revenue ($000)$14,369 $25,548 $20,787 $20,560 $52,335
<br />Available fund balance ($000)$28,781 $33,690 $30,304 $30,539 $29,526
<br />Net unrestricted cash ($000)$51,587 $48,884 $43,921 $46,109 $41,432
<br />Available fund balance ratio (%)200.3%131.9%145.8%148.5%57.1%
<br />Liquidity ratio (%)359.0%191.3%211.3%224.3%79.6%
<br />Leverage
<br />Debt ($000)$51,166 $61,076 $61,945 $61,824 $37,305
<br />Adjusted net pension liabilities ($000)$5,835 $5,304 $4,035 $3,932 $45,496
<br />Adjusted net OPEB liabilities ($000)$94 $64 $84 $54 $4,376
<br />Other long-term liabilities ($000)$114 $133 $148 $243 $1,726
<br />Long-term liabilities ratio (%)398.1%260.6%318.5%321.3%210.2%
<br />Fixed costs
<br />Implied debt service ($000)$2,571 $3,589 $4,266 $4,303 $2,477
<br />Pension tread water contribution ($000)$159 $174 $269 N/A $1,199
<br />OPEB contributions ($000)$1 $2 $7 $7 $179
<br />Implied cost of other long-term liabilities ($000)$10 $8 $9 $10 $115
<br />Fixed-costs ratio (%)19.1%14.8%21.9%22.3%9.6%
<br />For definitions of the metrics in the table above please refer to the US Cities and Counties Methodology or see the Glossary in the Appendix below. Metrics represented as N/A indicate the
<br />data were not available at the time of publication. The medians come from our most recently published US Cities and Counties Median Report.
<br />The real GDP annual growth metric cited above is for the Minneapolis-St. Paul-Bloomington, MN-WI Metropolitan Statistical Area.
<br />Sources: US Census Bureau, Lake Elmo (City of) MN’s financial statements and Moody’s Ratings, US Bureau of Economic Analysis
<br />Profile
<br />The City of Lake Elmo is located in Washington County in southeastern Minnesota and is an eastern suburb within the Minneapolis-St.
<br />Paul metro area. The city serves a population of over 12,000 residents.
<br />Detailed credit considerations
<br />Lake Elmo benefits from a robust financial position with ample reserves and liquidity across governmental and business-type funds.
<br />Over the last decade, the city's population has steadily grown and full valuations have increased driven by both ongoing construction
<br />and rising residential property values. As a result, full value per capita has increased to over $280,000. Management is proactive in
<br />addressing capital needs related to growth and maintains a ten-year capital plan.
<br />Year-to-date results for fiscal 2025 (year-end Dec. 31) indicate fund balance will remain near 150% of total annual revenue. The city
<br />has accumulated reserves in utility funds in part to cash finance future capital, though management has no plans at this time for
<br />significant draws. The city's fund balance policy of maintaining between 50%-60% extends to utility funds, so even with a major draw
<br />utility cash balances will remain very healthy. Currently, the city is issuing nearly $2.2 million for street improvements which will result
<br />in long-term liabilities being over 330% of 2024 revenues, which is higher compared to peers. Leverage will continue to be elevated
<br />because of further annual borrowing plans to improve the city's infrastructure.
<br />This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the issuer/deal page on https://ratings.moodys.com for the
<br />most updated credit rating action information and rating history.
<br />2 2 July 2025 City of Lake Elmo, MN: Update to credit analysis
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