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Summary: St. Anthony, Minnesota; General. Obligation US$1.375 mil GO street recon bnds ser 201 OA due 02/01/2026 Long Term Rating AA/Stable New St Anthony GO Long Term Rating AA/Stable Affirmed Rationale Standard & Poor's Ratings Services has assigned its 'AA' long-term rating to the city of St. Anthony, Minn.'s series 2010 general obligation (GO) street reconstruction bonds. Standard & Poor's also affirmed its 'AA' rating on the city's previously issued debt. The 'AA' rating reflects our view of the city's: Strong income and wealth indicators relative to national levels; Healthy financial profile, including a very strong general fund balance; and Good management practices, including extensive planning, which have contributed to the city's strong financial standing. In our view, offsetting these factors are the city's high debt burden on a per capita basis and high debt expenditures as a percentage of total governmental costs. Officials will use bond proceeds to finance various capital improvements, per St. Anthony's five-year capital improvement plan. The city's full faith and credit GO pledge secures these obligations. St. Anthony is a fully built -out first -ring suburb of Minneapolis -St. Paul (Twin Cities). Overlapping both Hennepin County (AAA/Stable) and Ramsey County (AAA/Stable), the city has easy access to the Twin Cities via Interstate 35W and public transportation. Its residential population of about 8,437 mostly commutes within the metropolitan area, which provides ample employment opportunities. Residents also have access to public sector and retail jobs within the city itself. Income levels are good, in our opinion, with the median household and per capita incomes at 100% and 113% of the national levels, respectively. Taxable market value in the city has risen rapidly in the past five years, averaging an annual growth rate of 12%. A major redevelopment in the city, Silver Lake Village Redevelopment, contributed to the increase with its addition of apartments, condominiums, and commercial space to an area that formerly held an enclosed shopping mall. For 2008, St. Anthony's indicated market value was more than $893 million. At $105,912 per capita, this market value level is a sign of extremely strong wealth in the area, in our opinion. In our opinion, the city has exhibited very stable financial operations enhanced by a very strong general fund balance. At fiscal year-end 2008, general fund reserves held $1.44 million, of which $1.39 million was unreserved. At 28% of expenditures, this unreserved portion is very strong, in our view, but it is slightly below the city council's policy of maintaining 30%-35% of expenditures in reserves. In fiscal 2008, despite a year-end reduction in market value homestead credit (MHVC) of $65,000 from the state, St. Anthony generated a slight operating surplus of Standard & Poor's I RatingsGirect on the Global Credit Portal I April 21, 2010 1920461100030603 33