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LANSING (MICH.) $25 MILLION TAX INCREMENT BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --

LANSING (MICH.) $25 MILLION TAX INCREMENT BONDS RATED 'AA' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 27 /PRNewswire/ -- Lansing Tax Increment Authority, Mich.'s $25 million 1992 tax increment bonds are rated 'AA' by Fitch. The bonds are offered by negotiation through a syndicate lead by Hutchinson, Shockey, Erley & Co. on or about Nov. 2, 1992. Lansing's rating reflects strong financial management, the financial flexibility provided by maintenance of a healthy general fund balance, and stable economic base. Although the city expects that the bonds will be fully repaid from tax increments, Lansing's full faith and credit is also pledged, subject to tax limits. The credit trend is stable.
 Lansing is the state capital and its 1990 population was 127,321. General Motors is the largest taxpayer and employer, and employment levels at its city facilities have been relatively stable during the recession. Further company wide consolidations are possible. However, it is reported that the Lansing facilities may benefit from added production resulting from other G.M. consolidations. Considerable underlying economic strength and stability are provided by the city's role as the state capital and its proximity to Michigan State University.
 Proposals to amend the state constitution, if approved at statewide election Nov. 3, could further limit state equalized property value increases, although the city would retain its additional tax rate capacity. The city could impose an additional 4.96 mills, raising an extra $7.3 million in taxes before reaching the 20 mill limit for operations. The total unreserved general fund balance in fiscal 1992 of $10.3 million represents a healthy 13.9 percent of revenues. Tax shortfalls due to delinquencies are made up by Ingham and Eaton counties.
 Debt levels have risen in recent years, but are affordable. Overall debt per capita of $1,189 and debt as a percent of the market value of property of 5.1 percent are in the moderate range. The city is seeking to support most debt issued for solving combined sewage overflow problems from enterprise user fees.
 -0- 10/27/92
 /CONTACT: Stewart Simon of Fitch, 212-908-0508/ CO: ST: Michigan IN: SU: RTG


KD -- NY128 -- 5655 10/27/92 17:13 EST
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Publication:PR Newswire
Date:Oct 27, 1992
Words:363
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