Coralville City Officials Say Debt Rating Won't Impact Residents
Coralville city leaders say residents shouldn't be concerned about a recent blow to the city's credit rating.
Moody's Investors Service has lowered its bond rating for the city. A bond rating affects a city's ability to borrow and the cost of borrowing.
Moody's lowered its rating on the city of Coralville's $93.5 million of general obligation unlimited tax debt from Baa2 to Baa3, and reduced the rating on its $146.6 million of annual appropriation backed debt from Baa1 to Baa2.
The company cited the city's high debt profile and liabilities, including ownership of a hotel, golf course, performing arts center, brewery and restaurant.
Coralville Mayor John Lundell said the rating won't result in higher property taxes for residents,
"I don't think they're going to see a jump in their property taxes, we've held those steady for several years now," said Lundell. "The everyday citizen wont see a direct harm."
Coralville City Administrator Kelly Hayworth said the city has plans in place to pay down nearly all of the $250 million in debt over the course of the next two decades.
Hayworth noted that the city has never missed a debt payment and that the city continues to move forward with development and several new projects, including a 7,000 seat arena project that he believes will open debt free.