Fitch Rates Overland Park, Kansas' $16.3MM GOs 'AAA'.Business Editors CHICAGO--(BUSINESS WIRE)--Oct. 4, 2002 Fitch has assigned a 'AAA' rating to the City of Overland Park, Kansas' $16,250,000 Internal Improvement Bonds, Series 2002, which will sell competitively on October 7. Dated October 1, the bonds will pay interest each March 1 and September 1, beginning September 1, 2003, and mature September 1, 2003-2022. Bonds maturing on or after September 1, 2012 are subject to optional redemption beginning September 1, 2011. The Series 2002 bonds are general obligations of the city, secured by unlimited ad valorem taxes Ad Valorem Tax 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 city. Proceeds will finance various street, storm drainage and facility improvements; and to finance mobile data terminal equipment and software. The 'AAA' general obligation rating on the City of Overland Park, Kansas Overland Park is the second most populous city in the U.S. state of Kansas. It is located in Johnson County, a satellite city of Kansas City, and is near Olathe, Lenexa, Prairie Village and Leawood. In 2006, the estimated population is 167,500. is based on the city's high wealth and income levels, strong economic growth which consistently supports strong financial performance and a low debt burden. The rating also applies to $104.0 million of outstanding general obligation debt. The City of Overland Park is an affluent community in the Kansas City metropolitan area that benefits from a strong transportation system, high-quality schools and broad-based commercial development. Its population of 151,734 is almost double its level from twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. earlier and 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 levels are 47% above the U.S. average. Since 1993, the city's property values have grown 8.7% annually. The city's economy is diversified among service, trade and communications industries. Strong business investment - particularly in service industries - contributed to a shift in the employment base from manufacturing industries and government. City unemployment rates - 3.2% in July 2002 - have remained consistently below county, regional and national levels, reflecting 2.1% annual employment growth city-wide since 1990. Although the city represents 9% of the regional population, its retail establishments account for 16% of regional retail sales. Over the last decade, retail sales have grown 6.9% annually. Leading private employers include Sprint Corp. (headquarters), Black and Veatch LLP LLP - Lower Layer Protocol , Oak Park Mall Oak Park Mall is a shopping mall located in Overland Park, Kansas on 11519 West 95th street. Oak Park Mall is open from 10 a.m. to 9 p.m. Monday through Saturday and 11 a.m. to 6 p.m. on Sundays [1]. The mall contains 190 stores and the mall area is 1,500,000 sq. , and Yellow Corp. City government primarily provides public safety, public works and community development services. Due to healthy economic expansion, diverse tax revenues and strong financial management, the city has produced steady operating surpluses and contributed to the capital program. At the end of fiscal 2001 (12/31 year-end), the city's general government fund balances totaled $85.8 million (70.8% of expenditures and other sources), from $70.8 million in 1999 (64.4%). Although revenues to date are slightly below expectations in 2002, spending reductions are expected to yield balanced results by year-end. Through a series of financial standards, the city has minimized its use of long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. and the consequential financial burden on residents. The capital program is planned over a five-year period and is restricted by a series of financial ratio standards. Notably, debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay is limited to half of the project cost; the direct debt burden should be within $675 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 the overall debt burden to property market values should be less than 5%. The capital improvement program for 2003-2007 totals $227.4 million and focuses primarily on street and thoroughfare improvements, supported largely through state funding. In November 1998, city voters approved the dedication of a one-eighth percent sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. (expiring March 2004) to finance an accelerated street improvement project. Combined with additional capital transfers from the operating budget, internal funding sources meet most capital project funding and limit external borrowing. General obligation bonds represent 19% of the capital program's funding through 2007. Consequently, the city's direct tax-supported debt burden with this issue is $793 per capita and 0.9% of property market values. Including 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. - primarily from the city's three school districts - overall city debt is $2,836 per capita and 3.1% of property market values. |
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