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N/23/2000 17:S0 ET REF:N00D1319.0011 FR:NOODYS 70:9522494616 Pagt 2 of 2 <br />SOUND FINANCIAL POSITION EXPECTED TO CONTINUE <br />Moody*8 expects the city’s sound financial position to continue given a <br />history of conservative budgeting practices, resulting in the maintenance of <br />favorable levels of reserves. Three years of operating surpluses have resulted <br />in a General Fund balance of $2.2 million in fiscal 1999, or 53% of General <br />Fund revenues. In fiscal 1999, the water enterprise system received property <br />tax support to offset slower than anticipated development. Despite a slight <br />budgeted drawdown, officials expect a modest operating surplus for fiscal 2000 <br />due to a favorable variance in revenues. <br />MODERATE DEBT BURDEN CHARACTERIZED BY RAPID AMORTIZATION <br />Moody’S expects the city’s moderate debt burden of 2.5% to decline due to <br />expected tax base growth, rapid principal amortization, and lack of future <br />borrowing plans. While the city’s direct debt level is low, at 0.7%, borrowing <br />by overlapping school districts comprises approximately 70% of the city’s debt <br />burden. Principal amortization is rapid with 83% paid in ten years. <br />KEY STATISTICS <br />1998 estimated population: 7,728 <br />1998 full valuation: $1.2 billion <br />1998 full value per capita: $154,092 <br />Debt burden: 2.5% <br />Payout of principal: (10 years): 83.0% <br />FY99 General Fund balance: $2.17 million (53% of General Fund revenues) <br />ANALYSTS: <br />Jonathan North, Analyst, Public Finance Group, Moody’s Investors Service <br />Dianne Golub, Backup Analyst, Public Finance Group, Moody’s Investors Service <br />Linda Ebrahim, Senior Credit Officer, Public Finance Group, Moody’s Investors <br />Service <br />CONTACTS: <br />Journalists: (212) 553-0376 <br />Research Clients: (212) 553-1625