News
Fitch U.S. Muni Surveillance: St. John (Sanitary Dist), Indiana GOs Affirmed at 'A-'; Stable Outlook
NEW YORK-(Business Wire)-October 3, 2008 - In the course of routine surveillance, Fitch Ratings has affirmed the rating on the Sanitary District of the Town of St. John, Indiana's approximately $450,000 of outstanding sanitary district bonds of 1996 at 'A-'. The bonds, issued in the name of the Town of St. John, are secured by a special benefits tax, which is an unlimited ad valorem tax on all taxable property of the sanitary district; the sanitary district is coterminous with the town. The Rating Outlook is Stable.
The 'A-' rating reflects the financial position of the sanitary district, whose bond and interest fund was in a deficit position at the end of calendar 2007. The rating also reflects the town's solid tax base growth and above-average wealth levels, which are somewhat offset by its narrow local economy; most residents commute to jobs in the Calumet region or the City of Chicago. Moderately high overall debt ratios are balanced by minimal capital needs and limited borrowing plans.
The town did not receive its final distribution of 2007 property tax revenues from the county until March 2008, which contributed to the bond and interest fund's 2007 deficit. However, Fitch acknowledges that interfund borrowing from the town's considerable utility funds provides a degree of flexibility for the district to meet its annual debt service requirements until property taxes are received.
St. John is a residential community located in Lake County, Indiana, approximately 38 miles southeast of Chicago. Rapid population growth this decade reportedly stems from demand for housing within commuting distance of Chicago and the industrial region of northern Lake County. The town's 2007 population was 12,302, an increase of 47% since 2000. The sanitary district was created in 1984 to supplement the town's wastewater utility.
Fitch issued an exposure draft on July 31 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework').
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.
 |
 |
 |
|
||
 |
|
 |
|
||
Search Our News Using Google Search
Can't find what you want? Try using Google:
