Fitch Rts Grand Prairie, Texas Water/Wastewater Revs 'AA'.Business Editors AUSTIN, Texas--(BUSINESS WIRE)--Feb. 15, 2002 Grand Prairie, Texas This article is about the city in Texas. For the city in Alberta, Canada, see Grande Prairie, Alberta. Grand Prairie is a city in Dallas County (USA), with a significant overlap into Tarrant County, and a minor overlap into Ellis County. (the city) $4,100,000 water and wastewater system revenue bonds, series 2002 are assigned an 'AA' rating by Fitch. In addition, Fitch has assigned an 'AA' rating to the city's outstanding parity parity or space parity, in physics, quantity that refers to the relationship between an object or process and the image that it can produce in a mirror. water and wastewater system revenue bonds representing an upgrade from 'AA-'. The bonds are scheduled to sell competitively on Feb. 19. Dated Feb. 15, the bonds mature serially Jan. 1, 2003-2022. Bonds maturing on or after Jan. 1, 2013 are subject to optional redemption on Jan. 1, 2012, or any date thereafter, at par plus accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. to the date of redemption. The bonds are special obligations of the city payable from and secured by a pledge of and first lien lien, claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. on the net revenues of the system. Proceeds of the bonds will be used to fund water and wastewater system improvements and pay costs of issuance. The upgrade to 'AA' from 'AA-' represents the system's solid financial performance and substantial liquidity. Established financial policies have provided a foundation for solid performance that provides flexibility to the system. The rate structure is reasonable and is supported by a fully funded rate stabilization fund Stabilization fund may refer to:
The water system serves approximately 51,000 customers and approximately 90% of all treated water is supplied by the Dallas Water Utilities Dallas Water Utilities is the water and wastewater service operated by the City of Dallas, Texas (USA). External links
System debt is amortized rapidly, with 79% maturing in 10 years. In fiscal 2001, annual debt service coverage was a strong 3.2 times (x). Using fiscal 2001 net revenues, coverage of maximum annual debt service, which occurs in fiscal 2002, is 3.1x. The system maintained substantial liquidity in cash and investments and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying for fiscal 2001 equal to over 190 days of operating expenditures. In addition, restricted retained earnings restricted retained earnings The retained earnings that are unavailable for the payment of dividends to common stockholders. For example, dividend arrearages on cumulative preferred stock must be paid before any dividend payments can be made to common for construction expenditures and a rate stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders trust fund boost liquidity levels to over 420 days of operating expenditures. The debt to net plant ratio of 20% in fiscal 2001 is a substantial decline from the 36% level experienced in fiscal 1997. Projected capital needs through fiscal 2006 total $27 million of which $4 million will be funded with proceeds of the current offering. A portion of remaining capital needs is expected to be bond funded although future funding amounts have not been determined. Total capital costs are expected to increase in fiscal 2003 due to the recent completion of separate water and wastewater master plans. The city is evaluating the projects associated with each plan and will revise the capital improvement program in the fiscal 2003 budget to reflect any additional capital projects identified for near-term funding. While utility rates are slightly higher than the regional average, rates have been stable and are not expected to increase over the next five years despite potential future borrowings. |
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