Moody's Investors Service has assigned Aa1 ratings to the Gainesville Redevelopment Authority's $32.8 million Tax-Exempt Revenue Bonds (Gainesville Projects), Series 2022A and $3.1 million Taxable Revenue Bonds (Gainesville Projects), Series 2022B. Concurrently, Moody's has affirmed the Aa1 rating on the authority's outstanding Series 2012B and 2009A city-guaranteed bonds. Following the issuances, the authority will have approximately $53.9 million of City-guaranteed debt outstanding. The outlook is stable.
RATINGS RATIONALE
The Aa1 rating reflects the city's strong financial position that is supported by a robust and growing tax base and prudent budget management. The rating also incorporates the City's strong full value per capita, moderate debt and pension burden, and resident incomes that are below comparably rated cities. The rating also considers the provisions of an intergovernmental contract between the City and the Gainesville Redevelopment Authority.
RATING OUTLOOK
The stable outlook reflects the expectation that the City's financial position and debt profile will remain in line with the Aa1 rating category given a strong management team as well as the City's continued economic growth.
FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Decrease in pension and/or OPEB burden or their associated fixed costs
- Continued economic growth that contributes to an improvement in resident incomes
- Sustained trend of imbalanced operations and/or material decline in reserves
- Significant growth in long-term liabilities or associated fixed costs
The bonds are secured by an absolute and unconditional general obligation pledge of the City of Gainesville pursuant to an intergovernmental contract between the City and the Gainesville Redevelopment Authority.
USE OF PROCEEDS
The Series 2022A bonds will be used to finance a portion of multiple projects including a multi-field recreation facility referred to as "The Coop" and a building referred to as "The Boathouse" that will contain boating facilities, a conference center, City administrative offices, among other projects. The Series 2022B bonds will finance a portion of certain retail space at the above mentioned facilities.
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