Summary: Ann Arbor, Michigan; Miscellaneous Tax

S&P Global Ratings assigned its 'AAA' rating and stable outlook to Ann Arbor, Mich.'s roughly $15 million series 2022 Michigan Transportation Fund (MTF) bonds and affirmed its 'AAA' rating, with a stable outlook, on the city's existing MTF debt. MTF revenue secures the bonds; to the extent pledged revenue is insufficient, the city's limited-tax general obligation (GO) pledge provides additional security. We rate the MTF bonds under our criteria, titled "Priority-Lien Tax Revenue Debt," published Oct. 22, 2018, on RatingsDirect, which factors in pledged revenue strength and stability and Ann Arbor's general credit quality. In accordance with our criteria, titled "Methodology: Rating Approach To Obligations With Multiple Revenue Streams," published Nov. 29, 2011, the rating reflects our view of the

...COVID-19 slightly affected MTF revenue. MTF revenue, however, has been largely stable with officials noting Michigan Department of Transportation's (MDOT) three-year revenue projections show year-over-year distribution increases, which management is going to continue to budget conservatively for due to increasing fuel costs. Washtenaw County unemployment averaged 6.4% in 2020 due to COVID-19, but November 2021 unemployment improved to 3.4%. Officials report the city is seeing ongoing local economic growth due to various residential developments. (For more information, see the articles, titled "Economic Outlook U.S. Q2 2022: Spring Chills," published March 29, 2022; "Economic Research: U.S. Real-Time Data: Solid Job Gains, Surging Prices Fuel The Fed's...

Summary