Summary: Mount Vernon, Iowa; General Obligation

S&P Global Ratings assigned its 'AA-' long-term rating to Mount Vernon, Iowa's series 2022 general obligation (GO) capital loan notes, and affirmed its 'AA-' long-term rating on the city's existing GO debt. The outlook is stable. The city's unlimited ad valorem tax GO pledge secures the bonds. Proceeds will be used to renovate a police station and complete other street and utility improvements. The 'AA-' long-term rating reflects our view of the city's economic metrics, which we consider weak, even after considering that these metrics may be partially constrained by the presence of Cornell College. The rating further reflects the city's historical ability to sustain positive general fund operational results. Recent operating results reflect the use of cash accounting, the

...Most recent Historical information 2021 2020 2019 Weak economy Projected per capita EBI % of U.S. 75 Market value per capita ($) 69,747 Population 4,702 4,681 4,644 County unemployment rate(%) 5.0 Market value ($000) 327,951 287,699 Ten largest taxpayers % of taxable value 10.0 Adequate budgetary performance Operating fund result % of expenditures 32.5 (3.0) 9.1 Total governmental fund result % of expenditures (5.2) (30.2) 30.1 Very strong budgetary flexibility Available reserves % of operating expenditures 115.1 82.6 95.2 Total available reserves ($000) 2,669 1,896 1,951 Very strong liquidity Total government cash % of governmental fund expenditures 61 44 70 Total government cash % of governmental fund debt service 281 88 298 Strong management Financial Management Assessment Good Weak debt & long-term liabilities Debt service % of governmental fund expenditures 21.8 16.0 23.5 Net direct debt % of governmental fund revenue 199 WWW.STANDARDANDPOORS.COM/RATINGSXPRESS AUGUST 24, 2022 3...

Summary