Dubuque will issue $4.4 million of general obligation urban-renewal bonds and $7.5 million of GOs as soon as next week.

Ahead of the sale, Moody’s Investors Service affirmed the city’s Aa1 rating on the upcoming sale and $77.6 million of outstanding debt.

Proceeds of the urban renewal GOs will finance projects in Dubuque’s downtown urban renewal area, including construction of a intermodal passenger transportation center.

The second series of GOs will finance various capital projects and refund outstanding notes.

“Assignment of the Aa1 rating reflects the city’s role as a regional service and retail provider in northeastern Iowa and surrounding states; satisfactory reserves despite an ongoing trend of spending fund balance for capital projects; and an above-average debt burden supported by alternate revenue sources,” Moody’s analysts wrote.

They said the city is challenged by a reliance on volatile gambling revenues for general operations.

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