Moody's blesses Cedar Rapids' flood spending plan - InsuranceNewsNet

InsuranceNewsNet

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading newswires
Topics
  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property & Casualty
  • Advisor News
  • Washington Wire
  • Fiduciary Rule
  • INN Exclusives
  • Newswires
  • INNsider
  • INN Exclusives
  • NewsWires
  • Magazine
Sign in or register to be an INNsider.
  • INN Exclusives
  • NewsWires
  • ★ Regulation News
  • Podcast
  • Magazine
  • About
  • Advertise
  • Editorial Staff
  • Contact
  • Susbcribe

Get Social

  • Facebook
  • Twitter
  • LinkedIn
  • Google+
Insider
newswires
newswires RSS Get our newsletter
Order Prints Share
September 21, 2018 newswires No comments Views: 7

Moody’s blesses Cedar Rapids’ flood spending plan

Gazette (Cedar Rapids, IA)

Sept. 21--CEDAR RAPIDS -- A leading investor service has given a mostly positive review to a $342 million borrowing package to pay for Cedar Rapids flood protection through bonding and corresponding tax increases.

The plan approved Sept. 11 by the City Council included issuing $20 million per year in general obligation bonds for 10 years, from 2020 to 2029, and an additional $8 million in bonds from 2022 to 2029. Taxpayers are expected to see a 22-cent annual property tax rate increase during this period, although the amount could vary from year to year based on a number of factors.

"While the project will modestly increase the city's debt burden, it is credit-positive because it will reduce the city's primary environmental risk and costs associated with potential future flooding," Moody's Investor Service wrote in a report Wednesday.

The city's debt burden -- or full debt as a percentage of full value over the next five years -- is projected to see a "modest increase" to 2.6 percent by 2023 from its current level of 2.4 percent, according to Moody's.

The report notes the heavy investment that has been made for flood protection and response. This includes $820 million in the past 10 years on emergency protection measures and recovery efforts related to the 2008 flood. While state and federal grants covered the lion's share -- 94 percent -- the 6 percent borne by the city "is still considerable compared to the city's annual general fund revenues of around $107 million," the report stated.

"It is reassuring to know that Moody's evaluates the decisions communities make to determine the overall impact on finances," Cedar Rapids City Manager Jeff Pomeranz said in a statement. "It is fair that Moody's concluded the plan will modestly increase the city's debt burden but notes it will also reduce the city's exposure to economic and financial disruptions caused by flooding."

The report also noted the project still could face a $78 million funding shortfall at the end of 10 years, which the city said it plans to fill with a mix of local debt and other funding, according to the report.

Cedar Rapids is working on a 20-year, $750 million plan to protect properties on the east and west sides of the Cedar River in the downtown area.

The council unanimously approved the spending plan, saying now is the time to get it done given recurring flooding threats and the likelihood of limited state and federal support.

"As we look at the impact of natural disasters across the country, as well as what Cedar Rapids has experienced from flooding, it is clear that the plan we are putting in place is critical to the long-term economic health of our community," Pomeranz said.

l Comments: (319) 398-8310; [email protected]

___

(c)2018 The Gazette (Cedar Rapids, Iowa)

Visit The Gazette (Cedar Rapids, Iowa) at thegazette.com

Distributed by Tribune Content Agency, LLC.

Older

EDITORIAL: And Another Thing …

Newer

Your utility bill could reflect fire costs under new California law

Advisor News

  • MDRT Study Finds Consumers Want Advisors Over Tech
  • Your Clients Should Plan Retirement Savings To Last 23 Years
  • Robert Moore Steps Down As CEO Of Cetera, Due To Health Reasons
  • Financial Advisor Fined In $1M Scam
  • Mercer Advisors Acquires Arbor Asset Management
More Advisor News

Annuity News

  • Nick Lane Assumes Role As President Of AXA Equitable Life
  • Annuity Sales Spiked 14 Percent In 2018, No Slowdown In Sight
  • Speak Out: NAIC Gets Plenty Of Advice On Annuity Sales Rule
  • Lincoln Financial Introduces Annuity Designed For Retirement Rollover Dollars
  • IRI Urges NAIC To Proceed Cooperatively With SEC On Suitability
More Annuity News

Health/Employee Benefits

  • Government Headed For Close To Half The Nation’s Health Tab
  • National Health Expenditures To Hit $6T By 2027, CMS Predicts
  • Florida Governor Wants To Import Drugs From Canada
  • Dems Grapple With ‘Socialism’ Label On Health Care
  • One-in-Five U.S. Rural Hospitals At Risk Of Closing: Study
More Health/Employee Benefits

Life Insurance

  • AIG Sets New Term Life Insurance Rates
  • Northwestern Mutual Reports Strong 2018 Financial Results
  • Florida Police: Niece Steals $188,000, Life Insurance, From Aunt
  • P/C Broker Gallagher Widens Retirement Practice Into IMO Space
  • MDRT Study Finds Consumers Want Technology To Complement, Not Replace Human Advisors
Sponsor
More Life Insurance

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.
select Newsletter Options

Most Popular

  • Annuity Sales Spiked 14 Percent In 2018, No Slowdown In Sight
  • Understanding The Benefits Of Whole Life Insurance
  • Speak Out: NAIC Gets Plenty Of Advice On Annuity Sales Rule
  • What If The Market Goes Up? Why An FIA Is Better Than Stocks
  • P/C Broker Gallagher Widens Retirement Practice Into IMO Space

Featured Offers

Text Ads

Press ReleasesAll press releases

  • LegacyShield® Launches MyTax, An Integrated Solution for Simplified, Professionally Prepared, Tax Returns
  • Nassau Re Launches Insurtech Incubator Will Give Space and Support to Startups in Hartford
  • Peerfit Prepares for Medicare Expansion with Peerfit Move, Recruits Industry Veteran
  • Great American’s Annuity Customers Share Their Secrets to a Great Retirement
  • Securian Financial Introduces Affordable, Protection-Focused IUL with No-Lapse Guarantee
Add your Press Release >

Topics

  • Life Insurance
  • Annuity News
  • Health/Employee Benefits
  • Property and Casualty News
  • Advisor News
  • Washington Wire
  • Regulation

Top Sections

  • INN Exclusives
  • INN Insider

Our Company

  • About
  • Editorial Staff
  • Advertise
  • Contact

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter Google+
© 2019 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • Sitemap
  • AdvisorNews

Sign in with your INNsider Account

Not registered? Become an INNsider.