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DENVER, COLO. GOs RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

 DENVER, COLO. GOs RATED 'AA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Sept. 22 /PRNewswire/ -- Denver, Colo.'s $3.99 million 6 percent general obligation library bonds (Denver Mini-Bond Program) Series 1992E are rated 'AA' by Fitch. The 'AA' rating on $644 million in outstanding parity debt is affirmed. The bonds will be sold through negotiation Sept. 29 with Affiliated Banks of Denver as the processor. The credit trend is stable.
 Denver's economic recovery from severe dislocation in the mid-1980s continues despite the national recession. Measures such as employment and retail sales have shown good growth for four consecutive years, and monthly data for 1992 suggest gains as well. Long-term development will continue to focus around Denver's role as the regional economic hub and state capital. The area is still largely overbuilt, however, resulting from the speculative building boom of the mid-1980s. While real estate indicators are showing improvement, full economic recovery will be slowed by the existing oversupply in all sectors.
 Financial operations have been sound, returning to strong fund balance levels. Even during the extremely pressured 1985-1988 period, small general fund balances were maintained. A combination of an improving economy, tax increases, and spending restraint yielded positive operating results in each of the last four years. The ending unreserved fiscal 1991 fund balance represents a strong 8.4 percent of expenditures. The 1992 budget draws down the balance but preserves a level of about 6 percent of expenditures. Budgeting is conservative, including a 2 percent statutory reserve.
 Debt burden indicators have risen to moderate levels in recent years, as both the city and the coterminous school district address capital needs. This issue uses the city's remaining debt authorization, and there are no plans to seek additional voter approval in the next few years. Debt management continues to be conservative with rapid retirement of general obligation bonds.
 A tax and spending limitation initiative on the Nov. 3 ballot, if approved, would limit revenue raising ability and spending growth of both state and local governments. Many of the referendum's provisions would require court interpretation. Nevertheless, Denver officials have considered the initiative's general impact, and are prepared to comply with it in the 1993 budget if the referendum passes.
 -0- 9/22/92
 /CONTACT: Amy S. Doppelt of Fitch, 212-908-0514/ CO: ST: Colorado IN: SU: RTG


AH -- NY095 -- 2395 09/22/92 17:31 EDT
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Publication:PR Newswire
Date:Sep 22, 1992
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