Fitch Ratings assigns an 'A' rating to the United City
of Yorkville, Illinois' $1.5 million general obligation library bonds,
series 2006. The bonds will sell competitively on July 11 with Speer
Financial, Inc. serving as financial advisor on the transaction. The
bonds are secured by ad valorem taxes levied on all taxable property
within the city without limitation as to rate or amount. Proceeds will
finance continued expansion of the city's library. Fitch also affirms
the 'A' rating on the city's approximately $44 million of outstanding
general obligation debt. The Rating Outlook is Stable.
The 'A' rating is based on a rapidly growing tax base, above-average wealth levels and consistent financial performance guided by strong planning and prudent budgeting. Although the city's population has more than doubled since 1990, management has maintained healthy financial reserves and initiated a comprehensive plan to accommodate future growth. The city's debt levels are moderately high as a result of rapid economic expansion, but the capital plan anticipates little additional debt issuance and its pace depends on operating sources and developer contributions.
Located 45 miles southwest of Chicago, Yorkville has expanded at a rapid pace due to its proximity to the diverse employment bases in the Chicago and Naperville areas in addition to its affordable housing. Strong housing demand, particularly in single-family homes, has spurred tax base growth averaging 21% annually in the past five years. The city's 2000 median single-family home value equaled $157,700, compared to $130,800 for the state. Other wealth indicators are also favorable, as Yorkville's per capita income equaled 106% and 114% of state and national averages, respectively.
Yorkville's financial position is strong as growth has been factored into budgeting and capital planning. In accordance with its fund balance policy, which stipulates reserve levels of at least 15% of general fund spending, the city maintained an undesignated general fund balance of $1.5 million (15.5% of spending) in fiscal 2005 (June 30 year end) and has maintained undesignated reserves above 15% in each of the past four years. Steady financial performance is derived through a diverse revenue stream, with property and sales tax receipts supplemented by growth in development-related revenue such as building permit fees.
The city's direct debt is moderately high. Equating to $3,621 per capita or 4.4% of market value, the city's direct debt has a variety of alternate revenue sources available for bond repayment. Overlapping debt includes local school and community college districts, as well as county and forest preserve debt, bringing overall debt to a moderately high $6,845 per capita or 8.4% of market value. Fitch expects little debt issuance over the next few years as funding sources have already been identified for slated projects and residential developments will finance utility infrastructure.
The city's six-year capital plan totals $54.1 million. Two-thirds of the plan relates to water and sewer improvements, with the balance dedicated to street projects. Operating sources and developer contributions each provide about half of the financing.
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 a rapidly growing tax base, above-average wealth levels and consistent financial performance guided by strong planning and prudent budgeting. Although the city's population has more than doubled since 1990, management has maintained healthy financial reserves and initiated a comprehensive plan to accommodate future growth. The city's debt levels are moderately high as a result of rapid economic expansion, but the capital plan anticipates little additional debt issuance and its pace depends on operating sources and developer contributions.
Located 45 miles southwest of Chicago, Yorkville has expanded at a rapid pace due to its proximity to the diverse employment bases in the Chicago and Naperville areas in addition to its affordable housing. Strong housing demand, particularly in single-family homes, has spurred tax base growth averaging 21% annually in the past five years. The city's 2000 median single-family home value equaled $157,700, compared to $130,800 for the state. Other wealth indicators are also favorable, as Yorkville's per capita income equaled 106% and 114% of state and national averages, respectively.
Yorkville's financial position is strong as growth has been factored into budgeting and capital planning. In accordance with its fund balance policy, which stipulates reserve levels of at least 15% of general fund spending, the city maintained an undesignated general fund balance of $1.5 million (15.5% of spending) in fiscal 2005 (June 30 year end) and has maintained undesignated reserves above 15% in each of the past four years. Steady financial performance is derived through a diverse revenue stream, with property and sales tax receipts supplemented by growth in development-related revenue such as building permit fees.
The city's direct debt is moderately high. Equating to $3,621 per capita or 4.4% of market value, the city's direct debt has a variety of alternate revenue sources available for bond repayment. Overlapping debt includes local school and community college districts, as well as county and forest preserve debt, bringing overall debt to a moderately high $6,845 per capita or 8.4% of market value. Fitch expects little debt issuance over the next few years as funding sources have already been identified for slated projects and residential developments will finance utility infrastructure.
The city's six-year capital plan totals $54.1 million. Two-thirds of the plan relates to water and sewer improvements, with the balance dedicated to street projects. Operating sources and developer contributions each provide about half of the financing.
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.