Moody's Investors Service said it has upgraded the rating on the city of Le Center, Minn.'s general obligation debt to Ba3 from B1.
The Ba3 rating applies to $3.1 million of Moody's rated general obligation unlimited tax debt. The city has a total of $10.7 million of general obligation debt outstanding. Moody's has concurrently assigned a positive outlook.
The upgrade to Ba3 reflects the city's improved financial position due to two years of operating surpluses on an audited basis and an estimated operating surplus in fiscal 2014. While the city's general fund reserves have substantially improved, they remain small on a nominal basis.
City management has also implemented a long range financial management plan that provides ten year forecasts of the city's cash fund balance. In addition, the city's cash flow management has improved and borrowing is expected to be significantly smaller in 2015.
