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Moody's Ratings U.S. Public Finance <br />ESG considerations <br />Lake Elmo (City of) MN's ESG credit impact score is CIS-1 <br />Exhibit 4 <br />ESG credit impact score <br />Source: Moody's Ratings <br />Lake Elmo's ESG Credit Impact Score is positive (CIS-1), reflecting strong demographic, labor force and education trends as well as <br />excellent budget management with little governance risk. Exposure to environmental risks is neutral-to-low. <br />Exhibit 5 <br />ESG issuer profile scores <br />Source: Moody's Ratings <br />Environmental <br />The city's overall environmental issuer profile score is neutral-to-low (E-2), reflecting relatively little risk from physical climate, carbon <br />transition, water, natural capital, and pollution. Notably, the city has faced some exposure to PFAS chemicals in groundwater, but <br />management has been active in ensuring safe water for residents. Officials decommissioned an impacted well several years ago and <br />received settlement funds from 3M to fund necessary modifications to the water system. <br />Social <br />The social issuer profile score is positive (S-1). The city's population has grown substantially over the past decades, will likely continue <br />growing from ongoing residential construction. Unemployment generally tracks below the state and national rate. The city's median <br />family income is strong at over 200% of the national figure. Educational attainment is above-average compared to the nation, and <br />health and safety measures also compare favorably to the US. <br />Governance <br />Lake Elmo's governance profile score is positive (G-1). The city has a strong institutional structure and a history of conservative budget <br />management with maintenance of strong reserves. Property taxes comprise about half of Lake Elmo's operating revenue. The city does <br />not receive any local government aid from the state; therefore, it is subject to minimal risk associated with any potential budgetary <br />pressures at the state. Revenue-raising flexibility is moderate as Minnesota cities generally benefit from unlimited levying authority, <br />except during years in which the state has imposed limits. Levy limits are not currently in place for cities. <br />ESG Issuer Profile Scores and Credit Impact Scores for the rated entity/transaction are available on Moodys.com. In order to view the <br />latest scores, please click here to go to the landing page for the entity/transaction on MDC and view the ESG Scores section. <br />4 2 July 2025 City of Lake Elmo, MN: Update to credit analysis