Fitch Rates Yuba City, CA's Water Revenue Certificates `A+'.Business Editorss NEW YORK--(BUSINESS WIRE)--May 31, 2001 Yuba City Yuba City (y  `bə), town (1990 pop. 27,437), seat of Sutter co., N central Calif., on the Feather River; founded 1849 during the gold rush; inc. 1908. , CA's (the city) approximately $5 million water revenue certificates are rated `A+' by Fitch. The certificates are scheduled to be sold competitively June 5. The Rating Outlook is Stable. The water enterprise provides service to Yuba City and adjacent areas. In May 2001, the city acquired the Hillcrest hill·crest n. The summit line of a hill. Water Company and all of its water assets. A portion of certificate proceeds will reimburse re·im·burse tr.v. re·im·bursed, re·im·burs·ing, re·im·burs·es 1. To repay (money spent); refund. 2. To pay back or compensate (another party) for money spent or losses incurred. the city for acquisition costs. The service area base includes over 13,500 service connections, mostly residential. Yuba City is about 40 miles north of Sacramento, with a population of approximately 44,291. Yuba City's water utility's credit strengths include the service's essential nature to the community, good financial operations, a competitive rate structure, and officials' demonstrated ability and willingness to raise rates to meet capital program costs. Financial operations are characterized by its positive operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: . Including the utility's recent and planned rate hikes, rates should remain competitive with comparable areas. The utility's recently adopted rate plan schedule provides the city with ample revenues sufficient to support its capital program and related debt. Debt service coverage is very strong. Fiscal 2000 net revenues provide maximum annual debt service (MADS) coverage of 3.4 times (x). No additional near term debt is anticipated. Offsetting credit factors include revenue concentration, the potential for above anticipated growth and expansion, and the agriculturally dependent economy. More than 8% of total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. are generated from Sunsweet Growers Sunsweet Growers Incorporated is an agricultural marketing cooperative founded in 1917 as the California Prune and Apricot Growers Association. Sunsweet is headquartered in Yuba City, California, USA where, as of 2007, the company operated the largest dried fruit plant in Inc., the largest producer of dried tree fruits in the world. The high concentration of revenues with one customer creates a higher level of dependence by the utility on that one entity. Yuba City is rapidly growing and is actively annexing unincorporated Adj. 1. unincorporated - not organized and maintained as a legal corporation unorganised, unorganized - not having or belonging to a structured whole; "unorganized territories lack a formal government" portions of Sutter County. As part of the city's 1997 master plan, the city has identified much of its water enterprise capital needs. However, above anticipated growth and expansion may foster additional capital needs. Finally, the city has above- average unemployment and low income levels, typical of agricultural economies. |
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