Moody’s Investors Service upgraded Alexandria to A2 from A3 in conjunction with its sale this week of $4.4 million of general obligation improvement and utility revenue bonds. The upgrade affects a total of $21.5 million of debt, including the current issue. Proceeds of the sale will finance the extension of a water line to newly annexed areas of the city and various storm water improvement projects. Alexandria’s GO pledge backs the bonds, but a portion of the debt service will be covered by storm water utility revenues. Analysts said the upgrade was due to the city’s continued strong tax base growth, satisfactory financial operations supported by adequate reserves, and an average debt burden with limited future borrowing planned. The city of nearly 11,000 residents is a regional economic center providing employment in both manufacturing and health care. It is located on Interstate 94, 50 miles northwest of St. Cloud.

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