Fitch Rates Yorkville, Illinois' GOs 'A'; Debt Ctfs 'A-'.CHICAGO -- 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 United City of Yorkville, Illinois' $5.525 million refunding debt certificates, series 2006A, and an 'A' rating to the city's $3 million general obligation (GO) refunding bonds (waterworks waterworks: see water supply. and sewerage sewerage, system for the removal and disposal of chiefly liquid wastes and of rainwater, which are collectively called sewage. The average person in the industrialized world produces between 60 and 140 gallons of sewage per day. system alternate revenue source), series 2006B. The bonds will sell through LaSalle Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc. on or about Nov. 14 with Speer Financial, Inc. serving as financial advisor on the transaction. The bonds are payable from 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 without limitation as to rate or amount, although the city intends to repay the obligation using waterworks and sewerage system revenues. The certificates are payable from any monies of the city legally available and annually appropriated for the purpose of payment of debt service. Proceeds will refinance outstanding debt. Fitch also affirms the 'A' rating on the city's approximately $33 million of outstanding GO debt and assigns the 'A-' rating to the city's approximately $13 million of outstanding debt certificates. The Rating Outlook is Stable. The ratings are based on a rapidly growing tax base, above-average wealth levels and consistent financial performance guided by strong planning and prudent budgeting. Although the city's population has more than doubled since 1990, management has maintained healthy financial reserves and initiated a comprehensive plan to accommodate future growth. The city's debt levels are moderately high as a result of rapid economic expansion, but the capital plan anticipates little additional debt issuance and its pace depends on operating sources and developer contributions. Located 45 miles southwest of Chicago, Yorkville has expanded at a rapid pace due to its proximity to the diverse employment bases in the Chicago and Naperville areas in addition to its affordable housing. Strong housing demand, particularly in single-family homes, has spurred tax base growth averaging 21% annually in the past five years. The city's 2000 median single-family home value equaled $157,700, compared to $130,800 for the state. Other wealth indicators are also favorable, as Yorkville'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 equaled 106% and 114% of state and national averages, respectively. Yorkville's financial position is strong as growth has been factored into budgeting and capital planning. In accordance with its fund balance policy, which stipulates reserve levels of at least 15% of general fund spending, the city maintained an undesignated general fund balance of $1.5 million (15.5% of spending) in fiscal 2005 (April 30 year-end) and has maintained undesignated reserves above 15% in each of the past four years. Steady financial performance is derived through a diverse revenue stream, with property and 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. receipts supplemented by growth in development-related revenue such as building permit fees. Preliminary estimates of 2006 results indicate a small surplus in the general fund. The city's direct debt is moderately high. Equating to $3,684 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 4.5% of market value, the city's direct debt has a variety of alternate revenue sources available for bond repayment. 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. includes local school and community college districts, as well as county and forest preserve debt, bringing overall debt to a moderately high $6,907 per capita or 8.4% of market value. Fitch expects little debt issuance over the next few years as funding sources have already been identified for slated projects and residential developments will finance utility infrastructure. The city's six-year capital plan totals $54.1 million. Two-thirds of the plan relates to water and sewer improvements, with the balance dedicated to street projects. Operating sources and developer contributions each provide about half of the financing. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. 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