City of Cedar Falls Maintains Aaa Tax Rating

Moody's Ratings has announced that the City of Cedar Falls has maintained its general obligation unlimited tax (GOULT) Aaa rating. This is the top rating attainable by Moody's. Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. Cedar Falls has held this achievement since 2020.

According to the Moody's Ratings report, the Aaa rating reflects the City's strong financial performance. The City routinely outperforms its budget and transfers excess reserves to other governmental funds, which have also accumulated strong balances. Moody's cited stout financial management evidenced by a long history of strong reserves and liquidity as well as modest debt burden and low fixed costs as strengths for Cedar Falls.

"The city's local economy will continue to benefit from the institutional presence of the University of Northern Iowa and other stable employers. The city's financial position will remain strong given its conservative management and significant financial flexibility," Moody's report said.

The impact of this exceptional tax bond rating benefits both the City and its citizens.

"Achieving a Aaa rating helps the City receive lower interest rates when we sell debt, which in turn reduces the property tax burden for debt service," said Jennifer Rodenbeck, Finance and Business Director for the City of Cedar Falls. "The City is very proud of maintaining this highest rating from Moody's. Moody's recognizes that the City has sound financial practices which include conservative budgeting, low debt outstanding, and strong cash reserves. These practices were achieved thanks to staff and elected officials that have recognized the benefit of maintaining conservative financial policies."

About Moody's Ratings

Moody's Ratings (previously known as Moody's Investors Service) is a division of Moody's Cooperation and publishes credit ratings and provides assessment services on a wide range of debt obligations, programs, and facilities, and the entities that issues such obligations in markets worldwide including various corporate, financial institution and governmental obligations, and structured finance securities.