...S&P Global Ratings assigned its '##' long-term rating to North Mankato, Minn.'s series 2019A general obligation (GO) bonds. At the same time, we affirmed our '##' long-term rating on the city's GO bonds outstanding. The outlook is stable. The bonds are secured by the city's full faith and credit pledge and ability to levy unlimited ad valorem property taxes. The bonds are payable from special assessments, water and sewer revenues and tax levies; however, the rating is based on the unlimited ad valorem tax pledge, which we view as the stronger security. Proceeds will be used to finance street, sewer, and storm water improvements and to purchase equipment. North Mankato's financial history has remained strong and stable in recent years, with historically very strong reserves consistently remaining in city's fund balance policy of 25%-35% of expenditures, a trend that we expect to continue. The rating is backed by a strong management team that monitors financial performance regularly and continuously...
