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Surveillance Results In Rating Actions On 3 7 Midwest Issuers
<br /> funding of about$3.8 million.Management has indicated that it plans on transferring excess reserves from the
<br /> school's debt service fund into a rainy day fund,which will be used to offset the reduced state aid collections in
<br /> 2010.We understand that management plans on utilizing a proposed operating levy referendum in May 2010 to
<br /> offset the lowered state aid funding for future years.However,should the operating levy fail to pass,it is our opinion
<br /> that management will take the appropriate actions to bring expenditures in line with lowered state funding levels.
<br /> The corporation's overall net debt burden is,in our opinion,moderate at 3.9%of market value and high at$5,520 per
<br /> capita.The corporation's FMA score is"standard".
<br /> DeKalb County Redevelopment Commission(AA-)
<br /> The DeKalb County Redevelopment District is located in the northeastern corner of Indiana and includes all of DeKalb A- John Sauter
<br /> County with the exception of the cities of Garrett and Auburn.The district serves approximately 55%of the total
<br /> county population of 40,285(2000 U.S.Census),and covers approximately 90%of the county's total land area.The
<br /> district's pay 2008 net assessed valuation totaled$1.2 billion,which was 58%of the total countywide net assessed
<br /> valuation.We consider county income levels good with 2008 median household EBI at 98%of national levels.
<br /> Countywide unemployment totaled 13.2%in 2009,up from a 2008 annual average of 7.2%.Following a$1.2 million
<br /> surplus in 2007,the county finished fiscal 2008 with a$537,000 shortfall,bringing the general fund cash balance to
<br /> $3.54 million,which we consider to be a very strong 27%of fund expenditures.Additional liquidity is available in the
<br /> rainy day fund,which totaled$588,000 to conclude fiscal 2008.Although fiscal 2009 results are not yet available,
<br /> management has indicated its expectation of balanced general fund operations.Direct debt levels total$41 per
<br /> capita and 0.1%of market value.The FMA score is"standard"
<br /> Indianapolis-Marion County Building Authority-Library Corp.(AA+) _
<br /> The debt issued by the Indianapolis Local Public Improvement Bond Bank for Indianapolis-Marion County Building AA+ Caroline West
<br /> Authority-Library Corp.,is based on the lowest rating of the participating qualified entities,including the
<br /> Indianapolis-Marion County Public Library(IMCPL),the City of Indianapolis,and four districts under the jurisdiction of
<br /> the city of Indianapolis,including the sanitary district,flood control district,metropolitan thoroughfare district,and
<br /> the park district.IMCPL is rated'AA+'while the other qualified entities are rated'AAA'due to financial oversight and
<br /> control by the city of Indianapolis.Although the library's cash flow has suffered in recent years due to late tax bill
<br /> distributions by Marion County,management indicates that operations are stable.At fiscal year-end 2008(Dec.31),
<br /> the general fund held$2.2 million,or a good 6.9%of expenditures in our view.However,negative$250,000 of this
<br /> amount was unreserved,or,in our view,a low negative 0.6%of expenditures.In 2008,the district had$12.9 million
<br /> in property taxes receivable,which was distributed in fiscal 2009.We understand that fiscal 2009 operating results
<br /> show the library maintaining a fund balance of approximately$2.3 million.Management informs us that if tax bills for
<br /> pay 2010 are distributed on time by the county,the general fund should hold$12.5 million in cash by the end of the
<br /> fiscal year,or a very strong,in our opinion,32%of expenditures.The library district is currently weighing a variety of
<br /> options to restructure future operations in order to compensate for a loss in revenue due to the Circuit Breaker,
<br /> valued at$3.2 million for 2010.The library's FMA score is"good."
<br /> Kendallville Public Library(A+)
<br /> Kendallville Public Library serves an area more than twice the size of the city of Kendallville(population 9,800),which A- Caroline West
<br /> is located in Noble County in northeastern Indiana,about 25 miles north of Fort Wayne.The district operates two
<br /> locations and the most recent population estimate is about 17,300,representing a little more than one-third of the
<br /> county's total population.Income levels in the city of Kendallville are just adequate in our view,with median
<br /> household and per capita EBI at 76%and 71%of the nation's levels,respectively.Library finances have strengthened
<br /> in recent years,even as the district built a new facility,due to three consecutive operating surpluses.At fiscal
<br /> year-end 2009(Dec.31),the library district's general fund held$640,000 in cash,or,in our opinion,a very strong 54%
<br /> of expenditures.A rainy day fund provides$9,000 of additional liquidity.Management projects that fiscal 2010 will
<br /> end with a slight surplus.The library district's FMA score is"standard."We understand that management has no
<br /> plans for additional debt.
<br /> Marion Public Library Corporation(A)
<br /> Marion Public Library Corporation,which is coterminous with the city of Marion,serves an estimated population of A- John Sauter
<br /> 28,713 in Grant County and is located 60 miles northeast of Indianapolis.Marion's income levels are,in our opinion,
<br /> adequate,with median household EBI at 68%of national levels.Pay 2010 net assessed value totals$914 million
<br /> while gross assessed value,a more accurate portrayal of true market values,totals about$1.8 billion,or$61,161 per
<br /> capita,which we consider strong.City unemployment averaged 13.2%in 2009,up from a 2008 annual average of
<br /> 9.0%.The corporation posted an unaudited$8,000 surplus in fiscal 2009,bringing the unreserved general fund cash
<br /> balance to$709,000 or,in our view,a very strong 43.3%of expenditures.Additional liquidity is available in the
<br /> unrestricted gift funds and rainy day fund totaling$371,000.We understand that management expects balanced
<br /> operations in fiscal 2010.The corporation's direct debt burden totals less than 1%of market value and$84 per =
<br /> capita.The corporation's FMA score is"standard".
<br /> Marshall County Holding Corporation(AA-)
<br /> Standard & Poor's I RatingsDirect on the Global Credit Portal I March 15,2010 4
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