Fitch Rates $5.8MM Burleson, TX GOs 'A', Positive Outlook.Business Editors AUSTIN--(BUSINESS WIRE)--Aug. 16, 2002 Fitch assigns an 'A' rating to the City of Burleson, Texas Burleson is a city located partially in Johnson County and partially in Tarrant County in Texas. It is considered a suburb of Fort Worth and is located in the rapidly growing suburban expanse just south of the City. As of the 2006, the population was 30,300, up from 20,976 in 2000. (the city) $5,795,000 general obligation refunding and improvement bonds, series 2002. Additionally, the 'A' rating on the city's outstanding $8,545,000 general obligation bonds and $5,940,000 certificates of obligation is affirmed. The city anticipates applying, and expects approval, for a guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. rating on the current issue from a municipal bond insurer, whose insurer financial strength is rated 'AAA' by Fitch. The bonds are scheduled to sell the week of Aug. 19 via a negotiated sale managed by SWS SWS Slow Wave Sleep SWS Short Wavelength Spectrometer SWS Sturge-Weber Syndrome (birthmark) SWS Stadtwerke Speyer GmbH (Germany) SWS Social Work Services (US Army) Securities, Inc. Dated Aug. 15, the issue consists of serial bonds maturing from Mar. 1, 2003-2032. Bonds maturing on, or after, Mar. 1, 2013, are subject to optional redemption at a price equal to the par value plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. to the date of redemption on Mar. 1, 2012, or any date thereafter. The bonds constitute direct and voted obligations of the city and are payable from a direct and continuing ad va lorem tax levy on all taxable property within the city. Proceeds will be used to refund a portion of the city's outstanding general obligation debt for interest savings, make improvements to the city's drainage system Noun 1. drainage system - a system of watercourses or drains for carrying off excess water system - instrumentality that combines interrelated interacting artifacts designed to work as a coherent entity; "he bought a new stereo system"; "the system consists of a , and pay costs of issuance. The Rating Outlook for the city is changed to Positive due to anticipated 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. and property tax revenues generated from the recent opening of the retail shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into Gateway Station (Gateway). The 'A' rating reflects the city's solid fiscal management and growing economic and tax bases which have benefited from its proximity and easy access to Fort Worth. The city's population continues to increase as does its retail base. Indicative of the retail growth is the development of Gateway, which is anchored by several national retail merchants and which has boosted city sales tax receipts for fiscal 2002. When completed and fully occupied within the next year Gateway is expected to increase sales taxes by 20% over fiscal 2001 levels and collectively rank the center among the top five in taxable values. The rating also incorporates the strong community support for the city's bond programs despite the relatively high overlapping debt Overlapping Debt The debt of a political entity such as a state where its tax base overlaps the tax base of another political entity such as a city within the state. Notes: If the issuer of a municipal bond has overlapping debt, it should be considered. ratios. Future borrowing needs are expected to be primarily funded from sales tax revenue bonds which should have a limited impact on city residents since an estimated 60% of all sales tax receipts are from non-residents. The city is located 15 miles south of downtown Fort Worth along the Interstate Highway (IH) 35W corridor. Attracted by the ease of access to the Fort Worth business area and by affordable housing prices, the city's census population increased 27% from the 1990 to 2000. Currently there are over 40 residential subdivisions at various stages of completion with residential values for 2002 averaging roughly $94,000, up from $55,000 in 1993. Because of the direct access via IH35W, many residents commute to jobs in Fort Worth. However, as the city continues to attract commercial and retail development, many residents are finding employment within the city. The city has demonstrated strong financial management while meeting the expectations of increased quality of life features of more affluent families relocating to the city. The city has used available cash balances to fund numerous capital projects while consistently maintaining healthy general fund balances in excess of its policy of retaining two months worth of operating expenditures. For fiscal 2001, the undesignated general fund balance totaled 68 days of operating expenditures and transfers out and city officials expect similar results for fiscal 2002, in line with budget projections. Sales tax results for fiscal 2002 have been strong with increases expected at 7%-8% over fiscal 2001 levels, primarily as a result of the opening of Gateway. In addition, taxable property values have grown rapidly over the last five years at an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. rate of 12% and are expected to increase an additional 13% in fiscal 2003. Overall debt levels are high at $2,450 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 6% of the city's taxable assessed value (TAV tav also taw n. The 23rd letter of the Hebrew alphabet. See Table at alphabet. [Hebrew t ) despite state funding of 32% of overlapping school district debt. Burleson Independent School District Burleson Independent School District is a public school district based in Burleson, Texas (USA). The district was founded in 1909 by the citizens of Burleson. [1] , the primary district serving the city, accounts for 59% of all overlapping debt. After the current offering the city will have $3 million remaining in bond authorization which will likely be issued within the next 2 years. In addition, the city may issue an additional $7.5 million of sales tax revenue bonds during the same period as the general obligation bonds to fund street and fire station projects; the city currently has $14.4 million of sales tax revenue bonds outstanding. Excluding sales tax bonds and school district debt supported by the state, the city's overall debt ratios improve to $1,890 per capita and 5% of TAV. |
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