Fitch Rates Fairbanks North Star Borough, Alaska $22.7MM GOs 'A+'; Outlook Stable.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Fitch assigns an 'A+' rating to the $12 million of Fairbanks North Star Borough, Alaska Fairbanks North Star Borough is a borough located in the state of Alaska, United States. It is part of the 'Fairbanks, Alaska Metropolitan Statistical Area' which encompasses all of the Fairbanks North Star Borough, and is slightly smaller in size than the state of New Jersey. , general obligation (GO) school bonds, 2007 series J, and to the $10.7 million GO refunding bonds refunding bond A bond that is issued for the purpose of retiring an outstanding bond. Issuers refund bond issues to reduce financing costs, eliminate covenants, and alter maturities. See also crossover refunding bonds, prerefunding. , 2007 series K. In addition, Fitch affirms the 'A+' rating on the $123.7 million in outstanding GO bonds. The Rating Outlook is Stable. The bonds are expected to sell competitively on Jan. 24, 2007 with Bartle Wells Associates acting as the borough's financial advisor. The 'A+' rating reflects the borough's continued strong financial position and conservative financial management policies, low debt burden with a high level of state debt service reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. , and continued assessed valuation gains. These factors are offset by the somewhat limited, though diversifying, economy which is heavily driven by natural resources and the area's constraints resulting from its remote location and severe climate. With an estimated population of almost 88,000, Fairbanks North Star Borough is the center of trade, commerce, and government for the interior and northern Alaska. Located in central Alaska, Fairbanks North Star Borough is a key center for services, retail, and healthcare, as well as a central transportation hub Transportation hub is a location where traffic is exchanged across several modes of transport. These modes may include any of railway, tramway, rapid transit, bus, automobile, truck, airplane, spacecraft, ship, ferry, pedestrian or any other kind of transportation. . The main University of Alaska campus adds some stability to the area's economy, as do two sizable military bases. Nonetheless, the borough's economy is heavily reliant on its natural resources base and related infrastructure. Unemployment rates are below those of the state, while income levels and consumer purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. are comparable. The borough maintains a strong financial position, bolstered by prudent management practices and increasing revenues. In fiscal 2006, the borough had a total fund balance of 20% of its total expenditures, transfers out, and other uses, well in excess of its target 7%-10%. Taxes are the borough's primary revenue source. The borough also receives substantial state funding for debt service reimbursement and school district expenses. Assessed value has been strong, rising by an almost 10% annual average in the last two years. However, there is considerable concentration with the top ten taxpayers comprising 13% of assessed value. The series J bonds are part of a $23 million school bond authorization approved by the voters in October 2006, and are eligible for 70% reimbursement of debt service by the state, subject to appropriation. Bond proceeds will finance the borough's capital needs for the upgrade and maintenance of its school facilities. The series K bonds will refund 1996 Series U bonds, which financed capital improvements to borough schools. Of the 2007 series K bonds, almost 48% are eligible for 70% reimbursement by the state. Excluding state reimbursements, the borough's debt levels are low with direct debt at $1,638 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. , or 2.2% of market value, and overall debt at $1,775 per capital, or 2.4% of market value. 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