Standard & Poor’s last week upgraded Champlin’s general obligation rating two notches to AA-plus in recognition of the its stable financials, very solid reserves and strong financial management.
The review came amid the issuance of $1.94 million of GO permanent improvement revolving fund bonds.
“It is our opinion that Champlin management will maintain very strong reserves despite state aid reductions and the current trend of declining taxable market values,” wrote analyst Linda Merus.
The city, located in the Twin Cities region, has maintained general fund reserves of between 35% and 39% of expenditures. Its taxable market value decreased by 2.3% due in large part to the broad-based decline in market prices of area homes. Officials expect modest declines through tax year 2012.