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Surveillance Results In Rating Actions On 3 7 Midwest Issuers
<br /> population of 83,115.The district is located approximately 25 miles northwest of Detroit at the intersection of Clayton
<br /> multiple interstates in Southern Oakland County.Income levels in the district are,in our opinion,very strong,with
<br /> median household EBI at 135%of national levels.Market value decreased a total of 13%in the past two years to
<br /> $9.12 billion in 2009,or what we consider a good$109,738 per capita.From fall 2005 to fall 2008,enrollment showed
<br /> very slight declines averaging 0.7%annually;however,it increased 0.5%in fall 2009 to 11,967 students.
<br /> Management expects to see further declines in enrollment,and uses a conservative projection provided by an
<br /> enrollment consultant with respect to budget assumptions.The district posted a$4.2 million deficit in fiscal 2009,
<br /> bringing the unreserved general fund balance to$29 million or,in our view,a still very strong 19.53%of
<br /> expenditures.Management expects to draw on general fund reserves by$13.6 million in fiscal 2010,due in part to
<br /> reduction in state per-pupil funding levels.The district expects to keep general fund reserves at or above 10%-12%of
<br /> expenditures in fiscal 2011.The district's overall net debt burden is,in our opinion,low at 1.1%of market value and
<br /> $1,237 per capita.The district's FMA score is"good".
<br /> Fennville Public Schools(A+)
<br /> Fennville Public Schools serves an estimated population of 8,922 in Allegan County and is located along the Lake A- Kathryn
<br /> Michigan shoreline approximately 20 miles south of Holland.Income levels in the district are,in our opinion,good, Clayton
<br /> with median household EBI at 98%of national levels.Market value grew by an annual average of 5.8%since 2005 to
<br /> $1.03 billion in 2009,or$115,746 per capita,which we consider very strong.Since fall 2005,enrollment has been
<br /> mostly stable and showed an overall average increase of 0.4%annually to 1,480 students in fall 2009.Management
<br /> conservatively projects that enrollment will decline in future years.The district posted a$87,000 deficit in fiscal
<br /> 2009,bringing the unreserved general fund balance to$849,000 or,in our view,a good 6.77%of expenditures. -
<br /> Management expects to post a$300,000 surplus to the general fund reserves in fiscal 2010,due primarily to budget -
<br /> reductions made prior to the fiscal year,and a greater enrollment count than expected.The district's overall net debt
<br /> burden is,in our opinion,moderate at 2.7%of market value and$3,072 per capita.The district's FMA score is"good".
<br /> Grosse Pointe Farms(AA+)
<br /> Grosse Pointe Farms serves an estimated population of 9,000 in Wayne County and is located just 10 miles north of AA+ Kathryn
<br /> Detroit along the waterfront.Income levels in the city are,in our opinion,very strong,with per capita and median Clayton
<br /> household EBI at 236%and 194%of national levels,respectively.Market value decreased by an annual average of
<br /> 12.4%since 2007 to$1.95 billion in 2009,or$217,142 per capita,which we consider extremely strong.The city
<br /> posted operating surpluses in its general fund for five of the last six fiscal years,and the one draw on reserves was
<br /> due to a planned one-time capital expenditure in fiscal 2008.At fiscal year-end June 30,2009,the unreserved
<br /> general fund balance totaled$4.9 million or,in our view,a very strong 42.86%of expenditures.The fiscal 2010
<br /> budget calls for breakeven operations;however,management expects the end result to be slightly better than budget
<br /> due to conservative assumptions made with regard to property tax revenues and interest income.The city's overall
<br /> net debt burden is,in our opinion,low at 1.95%of market value and$4,230 per capita.Grosse Pointe Farm's FMA
<br /> score is"standard".
<br /> Ingham County(AA+)
<br /> Ingham County(population:275,000)is home to Lansing,the Michigan state capital,and Michigan State University. AA Caroline West
<br /> Both the state and university are major employers in the county,along with General Motors Corp.In our view,income
<br /> indicators are adequate with a median household EBI at 89%of the national level.The tax base has contracted given
<br /> the state's overall economic conditions,declining 6%in the past two years to reach$18.3 billion.However,per
<br /> capita market value remains strong in our view at$66,300.The county's finances also remain strong,in our opinion,
<br /> following a general fund surplus of$1.9 million in 2008(primarily due to an accounting treatment change),the
<br /> unreserved general fund balance totaled$17.6 million,or 30%of expenditures,which we consider very strong. -
<br /> Additional liquidity is available in the county's delinquent tax revolving fund($4.7 million),budget stabilization fund
<br /> ($10.5 million),and revenue-sharing reserve fund($17.2 million).Management's preliminary estimates for 2009 show
<br /> a general fund surplus of$400,000,while the 2010 budget calls for a use of reserves of$988,000.We understand
<br /> that the county has no major capital needs at this time.Ingham County's FMA score is"good."
<br /> Johannesburg-Lewiston Area Schools(A-)
<br /> Johannesburg-Lewiston Area Schools(population:6,439)is located primarily in Otsego County in the north-central A- Kathryn
<br /> portion of Michigan's lower peninsula,approximately 10 miles east of Gaylord,the area's commercial center.Income Clayton
<br /> levels in the district are,in our opinion,adequate,with median household EBI at 78%of national levels.Market value
<br /> grew by an annual average of 1.5%since 2007 to$1.22 billion in fiscal 2010,or$189,370 per capita,which we
<br /> consider extremely strong.Since fiscal 2007,enrollment has decreased 59 students to 798 in fiscal 2010,and
<br /> management expects declines to continue in the near future.The district posted a$416,000 deficit in fiscal 2009,
<br /> bringing the unreserved general fund balance to$571,000 or,in our view,a good 7.4%of expenditures.Management
<br /> expects to draw on general fund reserves by$349,000 in fiscal 2010,bringing reserves to an adequate 2.9%of
<br /> expenditures.The district's overall net debt burden is,in our opinion,low at 0.52%of market value and$985 per
<br /> capita.The district's FMA score is"standard".
<br /> Standard &Poor's I RatingsDirect on the Global Credit Portal March 15,2010 6
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