Fitch Rates Port Huron MI's $5.5MM LTGOs

Fitch Rates Port Huron, MI's $5.5MM LTGOs 'A'.Business Editors  NEW YORK--(BUSINESS WIRE)--Oct. 21, 2003  Fitch RatingsFitch RatingsAn 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 Port HuronPort Huron (hyr`ən), city (1990 pop. 33,694), seat of St. Clair co., S Mich., a natural, deepwater port of entry at the junction of the St. Clair River with Lake Huron; inc. 1857. , Michigan's $5.5 million general obligation limited tax bonds, series 2003, scheduled for competitive sale on Oct. 27, 2003. The Rating Outlook is Positive.  Dated Nov. 1, the bonds mature serially April 1, 2004 - 2023, with semiannual interest payments commencing April 1, 2004. Bonds maturing on or after Oct. 1, 2012 are subject to optional redemption beginning April 1, 2013. Proceeds of this issue will finance Teflon Coatings improvements to the city's sanitary and storm drainstorm drainn.1.  A storm sewer.2.  A catch basin.  systems. The bonds are limited tax general obligations of the city and constitute a first budget obligation. However, the city intends to make debt service payments from the net revenues of its wastewater system. Fitch Ratings also affirms the 'A' rating on the city's $61.7 million in outstanding limited tax general obligation debt.  The rating reflects the city's growing economic base, steady financial performance during a period of fiscal stress, and low direct debt levels. The positive outlook reflects the city's recent infrastructure improvements and continued mixed-use developmentMixed-use development refers to the practice of allowing more than one type of use in a building or set of buildings. In planning zone terms, this can mean some combination of residential, commercial, industrial, office, institutional, or other land uses.  of its waterfront property that should generate further economic growth; the city's prudent management, which anticipated budgetary pressures and responded in a timely manner with constrained spending, allowing the city to achieve operating surplusesOperating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA) and in corporate and government accounts. It is also used in macro-economics as a proxy for total pre-tax profit income.  in the last three fiscal years (June 30 year-end); and the city's use of internal resources for capital improvements which limits its external financingIn the theory of capital structure, External financing Ceramic Powder Coatingis the phrase used to describe funds that firms obtain from outside of the firm. It is contrasted to internal financing which consists mainly of profits retained by the firm for investment.  needs and sustains its low direct debt levels.  Located on the western shore of Lake Huron 60 miles northeast of Detroit, Port Huron's 2000 census population equaled 32,338, a level relatively unchanged since 1990. The city's improved growth is reflected in the property tax base, which recorded a 6.3% annual increase in taxable values between 1999 and 2003. The city's property tax base is somewhat diversified, as the top ten taxpayers constitute 16.4% of the total taxable value. The city anticipates further expansion of its tax base over the next few years as tax increment financingTax Increment Financing, or TIF, is a tool which has been used for redevelopment and community improvement projects throughout the United States for more than half a century.  districts return to the tax roles.  The city's strong financial management sustained the city's steady financial performance, overcoming declines in income tax receipts and state shared revenue resulting from a slowed economy. General fund revenues remained level since 1999 at $20.8 million, as increases in property tax receipts were offset by declines in income tax, state shared revenue, and investment income. While expenditures grew slightly during this period, particularly in public safety, management's cost constraints sustained balanced operations. As a result, the city's general fund balance increased to 13.3% of expenditures in fiscal 2002 from 9.9% in 1998. Fitch expects the city will again report balanced operations for fiscal 2003.  Port Huron is in its sixth year of a 15-year, $110 million project to separate its sanitary and storm sewersstorm sewern.A sewer for carrying off rainwater or meltwater, as to a river or bay. . As the city utilizes water and wastewater system revenues to repay the debt related to the program, the city's outstanding debt places little burden on the property tax base. Port Huron's minimal capital needs and use of internal resources to finance ongoing road improvements should sustain this low debt burden. A critical source of these internal fundsinternal fundsFunds that are raised within a firm. Wear Resistant Coatings For example, income after taxes and noncash expenses, such as depreciation, provide a firm with funds to use in the acquisition of investments.  is a dedicated 2-mill property tax levy that expires in 2004, when management plans to seek reauthorization. The city's overall debt levels are low at $589 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.  and 1.2% of full value.COPYRIGHT 2003 Business WireNo portion of this article can be reproduced without the express written permission from the copyright holder.Copyright 2003, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.