Moody’s Upgrades City of Dubuque’s Bond Ratings

July 12, 2023 – FOR IMMEDIATE RELEASE

Moody’s Investors Service has upgraded the City of Dubuque’s issuer rating and outstanding general obligation unlimited tax bonds from Aa3 to Aa2, the third-highest rating possible.  The improved rating will assist the City in securing the best terms for financial products like loans, which can provide substantial savings for the City and taxpayers. 

According to Moody’s, the issuer rating was upgraded to Aa2 because “the City has strong financial operations and ample revenue-raising flexibility, which has resulted in steadily improved available fund balance and cash. The city serves as a regional economic center and its regional economic growth rate has outpaced the nation over the past five years. The city's local economy is likely to remain strong because of its mix of commercial and industrial industries, stable population and steady tax base growth.”

Moody’s subsequent credit analysis of the City of Dubuque states, “The City’s healthy financial operations, with strong reserves, have resulted in steady improvement in available fund balance and cash ratios.”

Moody’s ratings range on a scale from Aaa (highest) to C (lowest), with 19 different designations in between. Moody’s has also assigned a Aa2 to the City’s Taxable General Obligation Corporate Purpose Bonds, Series 2023A with a proposed amount of roughly $6.25 million. These bonds have provided or will provide: $4,300,000 for Dubuque Ice Center settling remediation and building improvements, $600,000 for design costs of the Five Flags Center renovation, $245,000 for parking ramp major maintenance repairs, $193,000 for build-out of the second floor of Engine House #1, $176,000 for HVAC replacement at Fire Department Headquarters, $162,000 for costs related to the past acquisition of property for a potential new downtown parking ramp, and $574,000 for issuance fees and contingency for fluctuations in the bond market for interest rates.  Although the City is selling General Obligation Bonds to support the projects, repayment of the debt will be local option sales tax and Greater Downtown TIF.  The bond sale will be held on July 17, 2023.

Moody’s also upgraded the City’s outstanding moral obligation Sales Tax Increment Revenue Bonds (Annual Appropriation Property Tax-Supported), Senior Bond Series 2015A, from A2 to A1, the fifth-highest rating.

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MEDIA CONTACT:
Jennifer Larson, Chief Financial Officer
jlarson@cityofdubuque.org, 563-589-4398