Fitch Rates Alachua County, FL's $14MM Limited GO's 'A'.Business Editors NEW YORK--(BUSINESS WIRE)--Feb. 19, 2003 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 Alachua County, FL's $14,000,000 million limited general obligation bonds, series 2003 (Alachua County Forever Project) 'A'. The bonds are scheduled to sell competitively on March 25, 2003 and mature August 2003-2013. Fitch affirms its implied unlimited general obligation rating of 'AA-'. The 'A' rating reflects the county's low direct debt levels, solid financial history, stable economic base in higher education higher education Study beyond the level of secondary education. Institutions of higher education include not only colleges and universities but also professional schools in such fields as law, theology, medicine, business, music, and art. and health care and adequate, although limited, financial cushion provided for debt service by pledged revenues. This is the first issuance of a referendum in 2000 approving a 20-year, 1/4 mill property tax levy to support $29 million in debt. Pledged revenues based on the county's 2002 taxable assessed valuation (AV) of $7.1 billion are expected to cover debt service -- which is relatively flat throughout the life of the bonds -- 1.04 times (x). Since revenue generated from the 1/4 mill can only be used for debt service on these bonds, any excess funds will be used to redeem bonds early. While a fixed ad valorem According to value. The term ad valorem is derived from the Latin ad valentiam, meaning "to the value." It is commonly applied to a tax imposed on the value of property. millage mill·age n. A tax rate on property, expressed in mills per dollar of value of the property. is vulnerable to negative assessed valuations, rapid population growth and a 10-year history of consistent solid AV growth partly mitigates this risk. The county plans on issuing the remaining $15 million in 7 to 10 years; coverage on all 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. must be at least 1.0x. Direct levels are low while overall debt is more moderate, largely due to substantial outstanding school board obligations. Debt levels should remain moderate given the stable growth and the county's practice of funding projects through pay-as-you-go sources. Bonds proceeds from this issue will be used to purchase environmentally sensitive lands to protect water resources, wildlife habitats and natural areas suitable for resource-based recreation. Though the county has been drawing down general fund balance for the last four years to pay for one-time capital expenditures, financial performance is still solid with fiscal 2002 unreserved general fund balance equal to $9.7 million or 12.4% of spending. The county plans on drawing down fund balance just one more year, anticipating a fiscal 2003 unreserved general fund balance around $6.5 million. The county's taxing flexibility is limited as the county's operating millage of 8.9887 approaches the state's 10 mill cap. Additional strain may be placed on the county's finances if a lawsuit prevails in forcing the county to pay for the Sheriff's services in unincorporated areas In law, an unincorporated area is a region of land that is not a part of any municipality. To "incorporate" in this context means to form a municipal corporation, i.e., a city or town with its own government. through the countywide levy rather than a separate levy in the unincorporated areas. Located halfway between the Gulf and Atlantic Coasts in north central Florida North Central Florida is a region of the U.S. state of Florida. It comprises the north-central part of the state and encompasses Alachua, Bradford, Columbia, Gilchrist, Hamilton, Lafayette, Madison, Marion, Putnam, Suwannee and Union counties. , Alachua County's economy is focused around a fairly stable government employment base. Major employers include the University of Florida University of Florida is the third-largest university in the United States, with 50,912 students (as of Fall 2006) and has the eighth-largest budget (nearly $1.9 billion per year). UF is home to 16 colleges and more than 150 research centers and institutes. (18,000 employees and 47,250 students), Shands Healthcare (7,500 employees) and the Florida Department Florida is a department (departamento) of Uruguay. Population and Demographics As of the census of 2004, there were 68,181 people and 21,938 households in the department. The average household size was 3.1. For every 100 females, there were 100.4 males. of Children and Family (2,100 employees). The county's unemployment rate in November was a low 2.3%, less than half of the state and the nation. The county's population grew 20% in the 1990's. Income indicators are below state and national averages due in part to the large student population. |
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