## U.S. Public Finance ## CREDIT OPINION 23 March 2026 ## Contacts ## Isabella Romano+1.312.706.9960 ## Associate Lead Analyst isabella.romano@moodys.com ## Gera M. McGuire+1.312.706.9977 ## Associate Managing Director gera.mcguire@moodys.com ## CLIENT SERVICES ## Americas1-212-553-1653 ## Asia Pacific852-3551-3077 ## Japan81-3-5408-4100 ## EMEA44-20-7772-5454 ## Waconia Independent School District 110, ## MN Update to credit analysis ## Summary Waconia Independent School District 110, MN's (Baa1) credit profile balances the district’s strong local economy, stable enrollment, moderate leverage and improved finances against its recent history of negative fund balance. Credit strengths »Growing local economy in the Twin Cities metro area with strong resident incomes and a strong full value per capita »Growing reserves Credit challenges »Somewhat elevated leverage »Declining enrollment forecast for the next five years Rating outlook We do not assign outlooks to local governments with this amount of debt outstanding. Factors that could lead to an upgrade »Maintenance of available fund balance ratio above 10% »Maintenance of leverage ratio below 250% Factors that could lead to a downgrade »Any significant decline in reserve ratios »Leverage ratio approaching 400% ## Moody's Ratings ## U.S. Public Finance Key indicators Exhibit 1 ## Waconia Independent School District 110, MN 2022202320242025Baa Medians ## Economy Resident income147.7%147.2%146.1%N/AN/A Full value ($000)$3,775,255$4,412,202$4,636,199$4,739,566$855,377 ## Population21,81122,43022,791N/A13,512 Full value per capita$173,090$196,710$203,422N/A$87,529 ## Enrollment4,0494,0454,0003,9841,632 Enrollment trend-0.6%-0.8%-0.4%-0.5%N/A Financial performance Operating revenue ($000)$61,815$62,906$66,298$66,550$28,875 Available fund balance ($000)-$3,231-$3,071$4,258$9,191$4,818 Net cash ($000)$6,718$7,745$15,953$20,813$5,260 Available fund balance ratio-5.2%-4.9%6.4%13.8%17.8% Net cash ratio10.9%12.3%24.1%31.3%21.8% ## Leverage Debt ($000)$112,117$105,282$104,311$106,469$19,060 ## ANPL ($000)$124,885$96,039$87,392$58,880$34,760 ## OPEB ($000)$4,774$5,170$5,361$5,532$2,998 Long-term liabilities ratio391.1%328.3%297.2%256.8%N/A Implied debt service ($000)$8,375$7,830$7,314$7,219$1,373 Pension tread water ($000)$2,178$3,465$3,429$2,594$1,333 OPEB contributions ($000)$133$73$44$358$178 Fixed-costs ratio17.3%18.1%16.3%15.3%N/A For definitions of the metrics in the table above please refer to the US K-12 Public School Districts Methodology or see the Glossary in the Appendix below. Metrics represented as N/A indicate the data were not available at the time of publication. The medians come from our most recently published K12 Median Report. Sources: US Census Bureau, Waconia Independent School District 110, MN’s financial statements and Moody’s Ratings ## Profile Waconia ISD 110 is located 40 miles southwest of the Twin Cities metropolitan area and serves a population of about 22,800 residents. The distr…