Denver CO $95.5M GO Bonds Rated `AA` by Fitch IBCA.NEW YORK--(BUSINESS WIRE)--Nov. 9, 1999-- The city and county of Denver, CO's $95,505,000 general obligation various purpose bonds series 1999B are rated `AA' by Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals . The `AA' rating on $468 million in outstanding parity bonds Parity Bond Two or more bond issues with equal rights to bond payments. Notes: Also referred to as "part passu" or "pari passu" bonds, these types of fixed-income securities are commonly issued by municipalities as a way to gather finance capital. is affirmed. The new issue will be sold competitively on Nov. 10. Denver's credit quality is marked by a growing economy, sound financial operations, and a moderate debt burden. The city's employment and tax base is diverse, focusing on its role as a regional center and the state capital. Consistent economic gains have enabled the real estate market to recover from severe overbuilding. Financial operations benefit from the economic activity, although are reliant on 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. revenue. Fund balances continue to be high, partially offsetting the sales tax dependence. Revenue flexibility is limited by the TABOR initiative, also necessitating a high fund balance. Future capital needs appear be manageable. Population and job growth has been good and the city's unemployment rate, while above that of the metropolitan area and the state, is below the national average. Assessed value gains returned beginning in 1995, and taxable value has risen nearly 20% in the past four years. Wealth levels, important to financial operations given the sales tax reliance, generally are above state and national averages. Finances have benefited from the sound economy. The general fund's reliance on sales tax revenue has risen to over 50%, a concern given the rising competition for retail trade in the area. In fact, Denver's 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. retail sales have fallen to 79% of the metropolitan statistical area, down from 100% in 1993. However, the general fund maintains sound year-end balances, offsetting some concerns over sales tax revenue fluctuation Fluctuation A price or interest rate change. and further losses to the surrounding areas. Spending remains below available revenue, resulting in sizable siz·a·ble also size·a·ble adj. Of considerable size; fairly large. siz  a·ble·ness n. operating surpluses Operating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA) and in corporate and government accounts. It is also used in macro-economics as a proxy for total pre-tax profit income. in each of the past five fiscal years. The 1999 budget and projected results maintain strong year-end balance while funding city priorities.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion