Carrollton, TX's GO Bnds Rtd AA- by S&P;Rtgs Afmd.NEW YORK--(BUSINESS WIRE)--Aug. 5, 1998--Standard & Poor's CreditWire 8/5/98 - Standard & Poor's today assigned its double-'A'-minus rating to Carrollton, Texas' G.O. bonds series 1998. In addition, Standard & Poor's affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its double-'A'-minus rating on Carrollton's outstanding G.O. bonds series 1995 and 1996. The outlook has been revised to positive from stable. The rating reflects: -- A diversifying local commercial base and access to the Dallas MSA (Metropolitan Service Area) An urban area with at least 50,000 people plus surrounding counties. There are 306 MSAs and 428 RSAs (rural service areas) in the U.S. MSAs and RSAs are used to allocate cellular licenses. economy, -- Continued residential development and rising assessed valuation (AV), -- Sound financial performance, and -- A moderately high debt burden associated with ongoing growth pressures. Carrollton (population 97,200) continues to experience rapid population growth due to its location in Dallas and Denton counties and its inventory of available land. The local economy is deep and continues to diversify with a growing high technology industry as well as a stable core of manufacturing and service sector employers within several industrial parks. Commercial office space is being constructed in the new International Business Park located in the northeast section of the city. The location and a transportation network including rail and interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. access continues to attract business relocations and expansions reflected in $163 million of commercial building permits in 1997 and $64 million in the first six months of 1998. AV grew 6% to $5.4 billion in fiscal 1998. Wealth and income indicators are high as the median household effective buying income in Carrollton was 145% and 135% of the state and U.S. averages. Financial operations and position remain strong. The unreserved general fund balance increased to $10.3 million or 22% of operating expenditures in 1997. The expanding property tax base and related retail sales have resulted in annual operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. growth levels averaging over 5% since 1992. Property and sales taxes sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. account for 47% and 23%, respectively, of fiscal 1997 operating revenues of $62 million. Overall net debt is moderately high at $2,440 per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. or 4.4% of true value. Those levels should be maintained as the city and overlapping entities issue authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: but unissued debt over the next five years. The city estimates an average debt issuance of $10 million annually over the next 10 years with no increase in the debt service tax rate. The rate will be held constant and any surpluses produced by the $0.2427 tax rate per $100 of AV will be used to finance street and sidewalk A Microsoft service that was launched in 1997 to provide online arts and entertainment guides on the Web for major cities worldwide. In 1999, Microsoft sold Sidewalk to Ticketmaster, which continued to provide guides, ticketing and other information to the MSN network. improvements. OUTLOOK: POSITIVE The outlook reflects expectations for continued growth and diversification of the property tax base over the next one to three years while debt service payments stabilize stabilize See peg. and the city manages its capital needs with no tax rate increase. -- CreditWire
CONTACT: Kathryn Mock, Dallas, 214/871-1424
Malachy Fallon, Dallas, 214/871-1402
Copyright 1998, Standard & Poor's Rating Services
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