Monroe, WA receives AA rating for municipal campus improvements; local investor opportunity available
CITY OF MONROE NEWS RELEASE
FOR IMMEDIATE RELEASE: June 8, 2023
CONTACT: Becky Hasart, Finance Director, 360-794-7400, bhasart@monroewa.gov
MONROE, Wash. – Funding to remodel Monroe City Hall and Municipal Court continues to move ahead with the City receiving a AA rating from Standard and Poor’s (S&P) Global Ratings. In March, the Monroe City Council unanimously approved pursuing approximately $15.27 million of Limited Tax General Obligation Bonds (LTGO) to finance the construction. D.A. Davidson & Co. (Seattle, WA) is serving as the bond underwriter and will assist the City in allowing local investors to purchase tax-exempt bonds which are expected to have favorable interest rates due to the AA rating.
In its review of the City’s financial and economic profile, S&P stated that the AA rating reflects its view of Monroe’s broad and diverse regional economy, growing tax base, strong financial performance for the past three audited fiscal years, very strong financial reserves and liquidity, and very strong financial management, policies, and practices.
“We are pleased with the AA rating. S&P has recognized the progress the City has made over the past few years in building healthy reserves while maintaining prudent stewardship of city assets and services,” notes Becky Hasart, finance director. Monroe joins the cities of Arlington, Everett, Edmonds, Lynnwood and Woodway as the only six cities and towns in Snohomish County to have an S&P rating.
The use of LTGO Bonds (also known as Councilmanic Bonds) commits the city to pay its debt within existing revenues. Revenue sources include the first quarter Real Estate Excise Taxes (REET) and utility revenues over the next 35 years. REET is restricted to capital uses and utility revenue will support a portion of the remodel associated with utility staffing use. Councilmanic Bonds are not voter-approved nor are they a property tax increase.
Local residents who wish to invest in their community have the opportunity to purchase these bonds. Persons interested in purchasing should contact Monroe’s Finance Director Becky Hasart at 360-794-7400 or bhasart@monroewa.gov by Monday, June 12 at 4:30 p.m.
Since 2008, the City of Monroe has had plans to improve its Municipal Campus - City Hall, Municipal Court, Police Department, and Public Works and Parks Departments – to meet increased demand for services due to population growth, repair and replace failing building systems, and enhance accessibility. In July, City Hall and Municipal Court personnel will temporarily relocate while the Administrative Wing of the Municipal Campus is remodeled. Construction is expected to begin in late summer and take up to 24 months to complete. For project details and frequently asked questions, go to MonroeWA.gov.
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