Fitch Rates Addison, Illinois' $2.5MM UTGOs 'AA+'.

CHICAGO -- Fitch Ratings assigns an 'AA+' rating to the Village of Addison, IL's $2.5 million general obligation bonds, series 2004A, scheduled to price Oct. 13, 2004 through Griffin, Kubik, Stephens & Thompson, Inc. The Rating Outlook is Stable. The bonds represent a general obligation of the village, payable from an unlimited ad valorem tax levied on all taxable property within the village. Proceeds will refinance certain maturities of the village's general obligation, series 1997 bonds. Fitch also affirms the 'AA+' rating on the village's $28 million of outstanding general obligation debt.

The 'AA+' rating reflects the village's growing economic base, sound financial position, and modest debt burden. Addison's location near the center of the Chicago metropolitan area spurred its development into an important distribution and industrial center, and, coupled with residential growth, resulted in steady tax base expansion over the past decade. The village maintains a strong financial position, bolstered by several untapped home-rule taxing powers that provide significant financial flexibility. Direct debt levels should remain low as the village plans to finance its minimal capital needs through internal resources.

Addison, with a population of 35,914, is located in eastern DuPage County, approximately 25 miles west of downtown Chicago and 14 miles southwest of O'Hare International Airport. The village is a major distribution center for the Chicago metropolitan area due to its central location and proximity to O'Hare International Airport, railroads, and three interstate highways. The village's leading employer is United Parcel Service of America, Inc. (UPS), with more than 2,700 employees, followed by several mid-sized companies that provide a mix of products and services. However, residential employment reflects opportunities available throughout the Chicago metropolitan region. The unemployment rate in the village declined to 5.3% in August 2004 from 6.3% in August 2003.

Steady growth in the tax base, averaging 5.2% annually since 1995, reflects both residential and commercial development. The tax base is diversified with residential uses accounting for 60% of assessed value, industrial at 32%, and commercial at 9%. Over the past several years, the village added restaurants, a hotel, and a grocery store to its commercial base and continues to slowly annex adjacent unincorporated areas.

Addison is a home-rule community in sound financial condition. Over the past several years, the village used operating funds to finance capital projects including the construction of a new village hall. Total general fund balance in fiscal 2003 (April 30 year-end) equaled $5.6 million, or 35.8% of expenditures, an increase from 2001's $5.3 million (32.1%). The village continues to maintain its fund balance according to its policy of at least 25% of expenditures. Unaudited fiscal 2004 results indicate the village will realize an operating surplus of $400,000, achieved through both expenditure reductions and revenue performance beyond budgeted expectations.

The village's direct debt levels are modest, with debt per capita equal to $814 and 1.0% of market values. Overall debt is moderate at $2,044 per capita and 2.4% of market value. The capital plan, including a road maintenance program, is funded from internal sources. The village may remodel or rebuild its library, but the project remains in preliminary stages and related debt issuance is unlikely prior to 2006.