Moody's rating agency began notifying 177 local entities across the U.S. on Thursday that their AAA ratings could be in jeopardy if the U.S. government bond rating is lowered. The bond rating for local governments impacts the cost of borrowing for projects like schools, roads, affordable housing and other infrastructure.Although the Hot Dish Politics post doesn't mention the City of Edina itself, it too, would likely be affected. You know all that street replacement going on in Edina (well, and elsewhere, too) right now? It's all going to be bonded and charged back to the "benefitted" homeowners through special assessments.
All told, the potential downgrades in districts across the country could affect $69 billion in outstanding local debt. Other AAA rated local governments in Minnesota that have been notified include:
Dakota County, Edina School District, Maple Grove, Minnetonka Schools, St. Louis Park, Washington County, Wayzata city and school district.
The higher the bonding cost, the higher the assessments. Pretty simple.