Correction: Fitch Rates Hinsdale, Illinois $2.0MM LTGOs 'AAA'.Business Editors CHICAGO--(BUSINESS WIRE)--April 9, 2002 (The press release issued earlier had an incorrect sale date. The correct sale date for the bonds is April 16, 2002. The amended press release follows.) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. assigns an 'AAA' rating to the Village of Hinsdale, IL's $2,030,000 general obligation (limited tax) bonds, series 2002, scheduled for competitive sale April 16, 2002. Dated May 1, 2002, the bonds mature serially Jan. 1, 2004 - 2022, and pay semiannual Semiannual An event that occurs twice in a calendar year. Notes: A bond with semiannual coupons would issue payment once every six months. See also: Annual, Bond, Coupon Bond interest commencing Jan. 1, 2003. Bonds maturing on or after Jan. 1, 2011 are subject to optional redemption beginning Jan. 1, 2010. Proceeds will finance street improvements within the village. The bonds represent a general obligation, payable from ad valorem taxes Ad Valorem Tax A tax based on the assessed value of real estate or personal property. In other words ad valorem taxes can be property tax or even duty on imported items. Property ad valorem taxes are the major source of revenues for state and municipal governments. levied on all taxable property within the village limited as to amount but unlimited as to rate. Fitch affirms its 'AAA' rating for the village's outstanding $4.9 million of outstanding general obligation debt. The 'AAA' rating reflects the village's central location in the economically diverse Chicago metropolitan area “Chicagoland” redirects here. For for the racing venue, see Chicagoland Speedway. The Chicago metropolitan area is the metropolitan area associated with the city of Chicago in the United States. , growing property tax base, high wealth level, strong financial management, and low debt burden. Although the village is a mature, affluent suburb, significant reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. in the village's housing stock and commercial districts should sustain growth in the property tax base and provide additional resources to maintain its strong financial position. Service needs are modest and not expected to grow in real terms. Furthermore, the village's modest capital needs and internal financing internal financing The financing of asset purchases with funds generated in the usual course of operations rather than funds that are borrowed or raised from the issuance of stock. capabilities should preserve its low direct debt burden. Located primarily in eastern DuPage County, approximately 20 miles west of downtown Chicago, the village is a wealthy suburban community, which has a central location, an excellent transportation network, and a highly-educated workforce. The village recorded a 0.8% annual increase in population over the past decade, to 17,349 residents as of 2000. The village's per capita income Noun 1. per capita income - the total national income divided by the number of people in the nation income - the financial gain (earned or unearned) accruing over a given period of time equals 258% and 272% of the state and national averages, respectively. Reflecting the professional nature of the residential labor force, Hinsdale's unemployment rate for 2000 equaled 1.8%, well below the state's rate of 4.4%. While Hinsdale's local economy includes Hinsdale Hospital (2,375 employees), Amling's Flowerland (500), and Transport Service Co. (500), most residents commute TO COMMUTE. To substitute one punishment in the place of another. For example, if a man be sentenced to be hung, the executive may, in some states, commute his punishment to that of imprisonment. to downtown Chicago or nearby suburban office centers. The strong economy and significant reinvestment in the village's residential and commercial districts generated a 5.7% annual growth rate in the property tax base since 1995. With building permit values averaging more than $45 million annually, this growth trend should continue as completed projects join the village's tax roll. The tax base is well-diversified as the ten largest taxpayers represent just 4% of the village's total assessed valuation. Gains in property and sales tax 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. receipts derived from the strong economy and management's conservative budgeting practices allow the village to maintain its sound financial position. However, the village's planned use of reserves to finance new park construction and the acceleration of its street improvement program reduced its undesignated general fund balance to 28.8% of expenditures and transfers out for the fiscal year ended April 30, 2001, from 78.0% in 1999. Based on the village's stated fund balance policy, Fitch expects the general fund balance to remain at or above this level in the future. The village's significant internal capital funding and modest needs results in a below-average direct debt burden equal to $257 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. and 0.2% of full market value. Overall debt equals a moderate $2,731 per capita and 1.8% of full market value. |
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