Fitch Rates Jupiter, Florida's $17MM GOs 'AAA'; Outlook Stable.

NEW YORK -- Fitch Ratings has assigned an 'AAA' rating to The Town of Jupiter, Florida's (the town) approximately $17 million general obligation (GO) bonds, series 2005. The rating is the first assigned by Fitch to the GO debt of the town. The bonds are scheduled to price via negotiation with RBC Dain Rauscher later this month. The current issuance was approved by voters in August 2004 and will fund a land acquisition program to protect environmentally sensitive land, provide for open space and for traffic mitigation. In addition, Fitch assigns an 'AAA' rating to the town's $10.2 million outstanding GOs, series 2001. The Rating Outlook is Stable.

The town's superior 'AAA' credit rating reflects the town's strong financial position characterized by ample liquidity and healthy reserve levels. The rating also incorporates the town's low debt levels and limited capital need. Strong tax base growth over the past several years has been driven mostly by residential development occurring in this wealthy community. The economic base is primarily residential and is characterized by low unemployment and well above average income levels.

Located in northeastern Palm Beach County (GOs rated 'AAA' by Fitch), the town has developed rapidly over the past decade, with population growing at a considerably faster rate than the county and state. The town is a popular destination for retirees; a year-round population of about 45,000 increases by 12,000 seasonally. Over the past five fiscal years growth in taxable assessed value (TAV) has averaged 17.4% annually; residential property comprises about 80% of TAV. Income levels are well above average, with per capita money income representing 163% of state and national averages in 1999. Abacoa, a planned mixed-use community, has contributed to strong TAV growth. The development is approximately 85% built out and is the location of a branch campus of Florida Atlantic University and the spring training facilities of the St. Louis Cardinals and Florida Marlins.

The town's financial position is strong and has been stable historically. After two consecutive years of sizeable general fund surpluses, unaudited fiscal 2004 results show a small drawdown due to unanticipated expenses related to the 2004 hurricane season. It is the town's informal policy to maintain an unreserved general fund balance equal to 25% of the general fund budget. At the close of fiscal 2004, unaudited results show an unreserved balance equal to a strong 27% of general fund spending and transfers out, down from 34% at the close of fiscal 2003. The fiscal 2005 budget was balanced without any use of reserves and results year-to-date are positive, with revenues above budget and expenditures 2%-4% below budget. Additional financial flexibility is provided by the town's low operating millage rate of 2.61 mills for fiscal 2005, well below the state mandated 10 mill operating cap.

Direct debt levels are low at .5% of TAV and $908 per capita, and should remain so given limited capital need. Overall debt levels include the debt of Palm Beach County and the Palm Beach County school district and are low at 1.52% of TAV and $2,764 per capita. The town's fiscal 2005-2009 capital investment plan (CIP) totals $89 million. The only general government debt planned to fund the plan is the current GO issuance. The town dedicates about .3 mill of its operating tax levy annually for pay-as-you-go capital spending.