The 'A' rating on the city of Mount Vernon, Iowa's GO bonds series 2007 reflects the city's: Participation in the Cedar Rapids MSA economy with easy access to employment opportunities in Iowa City; Growing tax base, supported by average income levels; and Sound financial operations with stable reserve levels. Tempering the credit strengths above are the city's limited tax base and above-average overall net debt burden as a percent of market value. The city's unlimited-tax GO pledge secures the bonds. Proceeds from the series 2007 issue will be used to finance street improvements in the city and also to refund the city's series 1998A bonds. Mount Vernon is situated in east central Iowa in Linn County. As of 2004, the
