Meeker County’s facility remodeling plans should benefit from good financial terms due to a strong credit rating it received last week.
Standard and Poors assigned an “AA” rating for Meeker County’s general obligation bonds, which will be issued to finance $3.675 million remodeling at the courthouse, Law Enforcement Center and Family Services Center.
The “AA” rating is the third-highest available to agencies and is a result of the county’s strong financial condition, according to county officials, as S&P identified a “stable outlook.”
“S&P’s rating reflects positively on the financial practices the current and previous county commissioners and management,” County Administrator Andrew Letson said. “We will work to continue to ensure a strong financial health into the future.”
In its report, S&P said the county has a strong track record of positive operating results, as well as strong reserves and strong local economy. Proximity to the Twin Cities and St. Cloud metro areas and low debt also were mentioned as factors in the rating.
“The stable outlook reflects our expectation that the County will continue to achieve balanced-to-positive operating results after the planned reserve drawdowns,” S&P’s report reads, “and that very strong reserves and a manageable debt profile will also promote rating stability.”
In addition to the bonds, the County Board has decided to use existing reserves and one-time funds available through the American Rescue Plan Act of 2021 to pay for the building improvements.
“S&P has confirmed the county’s financial health, and the residents of Meeker County are reassured that the county remains in a strong position,” County Board Chairman Steve Schmitt said.
Meeker County is participating in the Minnesota State Standing Appropriation Program, which is intended to prevent default on local government bond issues. The program results in a credit-enhancement where the county can take advantage of the state’s “AAA” credit rating to obtain lower interest rates. Because of that, S&P has identified a long-term rating of “AAA” for the series 2023A general obligation capital improvement plan bonds that will be issued by the county for the remodeling projects.
A copy of the full S&P credit report is available on the county’s website, www.co.meeker.mn.us.
