Fitch Rates Akron-Summit County Library District, Ohio $34.9MM ULTGOs 'A+'.Business Editors CHICAGO--(BUSINESS WIRE)--Aug. 2, 2002 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 'A+' rating to the Akron-Summit County Public Library The Akron-Summit County Public Library system services all the suburbs of Akron, Ohio within Summit County. The main library is on South High Street in downtown Akron. Branches There are 18 branches in Summit County: 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 district, and are unlimited as to rate or amount. Proceeds of the current issue will finance the renovation and expansion of the main library and the construction, expansion, or renovations of five branch library buildings. The 'A+' reflects the District's diversifying and stable economy, low debt levels, and limited operating risks as a single purpose government. Financial operations appear balanced despite the district's use of cash-based accounting which limits the transparency of current financial position. The district's audited financial statements through fiscal 2000 record operating surpluses since fiscal 1997 and an unencumbered general fund balance of 11.8% of expenditures. However, recent declines in the district's primary funding source -- designated state income tax revenues -- limit financial flexibility. The district's property tax rate of 0.89 mills levied for operations is also at the voted maximum. The limited risks of the library district's operations and it's flexibility to govern expenses, mitigate concerns regarding these financial constraints. The Akron-Summit County Public Library District, which is located in northeastern Ohio about 35 miles south of Cleveland, serves a population of over 388,000. The district's service area includes approximately 67% of Summit County's ('AA' G.O. rating by Fitch) tax base and wholly encompasses the cities of Akron ('AA-' G.O. rating by Fitch) and Fairlawn. The district's boundaries also include approximately 0.4% of Portage Portage (1, 2 pôr`təj; 3 pôr`tĭj). 1 Town (1990 pop. 29,060), Porter co., NW Ind., a suburb of Gary, on Lake Michigan; inc. 1959. County's tax base. Continued diversification in the area from rubber and tire manufacturing to a growing service sector provides more employment opportunities, generates increased residential investment, and improves the overall attractiveness of the area. Goodyear Tire and Rubber Company The Goodyear Tire & Rubber Company was founded in 1898 by Frank Seiberling. Today it is the third largest tire company in the world after Bridgestone and Michelin. Goodyear manufactures tires for automobiles, race cars, airplanes, and heavy machinery. (4,000) and SUMMA Health System Summa Health System is one of the largest organized delivery systems in Ohio, encompassing a network of hospitals, community-based health centers, a health plan, a physician-hospital organization, an entrepreneurial entity, research and medical education and a foundation. (4,500) account for the districts largest employers. Wealth indicators in the area are higher than state and national averages with Summit County'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 representing 107% of both the state and national levels. The district's debt levels are modest: direct debt equals $206 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 0.38% of full market value. 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. totals $1,452 per capita, and 2.69% of full market value. Repayment of debt is somewhat slow with 49% of principal retired in ten years. The district's debt levels should remain low, as capital needs are limited; completion of the renovated and new library facilities will satisfy most capital needs for the next several years. |
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