Fitch Ratings assigns an 'A' rating to the Township of
Howell, Michigan's (the township) $1,835,000 special assessment
limited tax general obligation (LTGO) bonds, series 2006. The Rating
Outlook is Stable. Bendzinski & Co. serves as financial advisor on
this transaction, which is scheduled to sell competitively on Jan. 23.
Fitch also affirms the 'A' rating on the township's approximately $13
million of outstanding GO debt. Proceeds of this issue will finance
sewer system improvements. The bonds are secured by ad valorem taxes
levied on all taxable property in the township, subject to
constitutional and statutory tax rate limitations. However, the
township intends to repay this issue with special assessments derived
from its utility systems.
The 'A' rating is based on the township's rapidly growing tax base, above-average wealth levels, and strong financial condition. The rating also reflects the township's largely residential local economy and moderate debt levels. Although the township is expanding rapidly in terms of both population and residential and commercial development, management maintains a master plan and utility infrastructure plan that accommodates expected growth.
Howell Township, located along Interstate 96 in central Livingston County, Michigan, is a growing community benefiting from excellent transportation access to Lansing, Detroit, and Ann Arbor. Livingston County, which ranks as the state's third wealthiest county, is one of the state's most rapidly growing in terms of population, which increased an average 3.4% annually since 1990, while the township itself has grown at about the same rate to reach an estimated 6,594 in 2005. Historically a rural community, the township's proximity to regional employment centers and affordable housing attracts residential and commercial development, fostering tax base growth averaging 9.7% annually since 1998. Per capita money income within the township equaled $23,840, representing 108% and 110% of the state and national averages, respectively, as of the 2000 census.
Howell Township's expanding tax base and strong fiscal management result in a healthy financial position. The township achieved a total general fund balance equal to $758,765 or 84.8% of expenditures in fiscal 2005 (June 30 year-end), an increase from fiscal 2001's $520,858 (58.6%). Steady gains in property tax receipts, which averaged a rapid 15% annually during this period, partly compensated for declines in state-shared revenues. Reflecting this shift, state-shared revenues declined as a percentage of total general fund revenues to 42% in 2005 from 50% in 2001. The fiscal 2006 budget includes a modest use of reserves as the township increases staffing levels slightly, but the township is committed to maintaining a fund balance over $500,000, ensuring future financial flexibility.
Howell Township's outstanding debt relates to its portion of county-issued bonds for water and drain improvements, essentially repaid by 2010, and a small amount of its own general obligation debt used for water and sewer system expansion. As a result, its moderate direct debt equals $1,794 per capita or 1.3% of full market value. Incorporating the debt of school districts and the county, the overall tax burden equals a moderately high $6,161 per capita or 4.6% of market value. Though no other large capital projects are planned, the township may issue special assessment debt backed by its general obligation pledge in the next two years. However, special assessment debt issuance will only occur based on accelerated development within the township, and growing property values will ease the relative debt burden.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
The 'A' rating is based on the township's rapidly growing tax base, above-average wealth levels, and strong financial condition. The rating also reflects the township's largely residential local economy and moderate debt levels. Although the township is expanding rapidly in terms of both population and residential and commercial development, management maintains a master plan and utility infrastructure plan that accommodates expected growth.
Howell Township, located along Interstate 96 in central Livingston County, Michigan, is a growing community benefiting from excellent transportation access to Lansing, Detroit, and Ann Arbor. Livingston County, which ranks as the state's third wealthiest county, is one of the state's most rapidly growing in terms of population, which increased an average 3.4% annually since 1990, while the township itself has grown at about the same rate to reach an estimated 6,594 in 2005. Historically a rural community, the township's proximity to regional employment centers and affordable housing attracts residential and commercial development, fostering tax base growth averaging 9.7% annually since 1998. Per capita money income within the township equaled $23,840, representing 108% and 110% of the state and national averages, respectively, as of the 2000 census.
Howell Township's expanding tax base and strong fiscal management result in a healthy financial position. The township achieved a total general fund balance equal to $758,765 or 84.8% of expenditures in fiscal 2005 (June 30 year-end), an increase from fiscal 2001's $520,858 (58.6%). Steady gains in property tax receipts, which averaged a rapid 15% annually during this period, partly compensated for declines in state-shared revenues. Reflecting this shift, state-shared revenues declined as a percentage of total general fund revenues to 42% in 2005 from 50% in 2001. The fiscal 2006 budget includes a modest use of reserves as the township increases staffing levels slightly, but the township is committed to maintaining a fund balance over $500,000, ensuring future financial flexibility.
Howell Township's outstanding debt relates to its portion of county-issued bonds for water and drain improvements, essentially repaid by 2010, and a small amount of its own general obligation debt used for water and sewer system expansion. As a result, its moderate direct debt equals $1,794 per capita or 1.3% of full market value. Incorporating the debt of school districts and the county, the overall tax burden equals a moderately high $6,161 per capita or 4.6% of market value. Though no other large capital projects are planned, the township may issue special assessment debt backed by its general obligation pledge in the next two years. However, special assessment debt issuance will only occur based on accelerated development within the township, and growing property values will ease the relative debt burden.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.