|
Surveillance Results In Rating Actions On 37 Midwest Issuers
<br /> Lake Michigan Community College(AA)
<br /> Lake Michigan Community College's 263-acre main campus is in northern Berrien County,east of St.Joseph,Mich. A+ Kathryn
<br /> and Benton Harbor,Mich.Serving all of Berrien County and a portion of Van Buren County,the college offers job Clayton
<br /> training and apprentice programs,as well as academic courses for students intending to continue at a four-year
<br /> institution.Income levels in the college's service area are,in our opinion,adequate,with median household EBI at
<br /> 86%of national levels.Market value totaled$22.75 billion in 2009,or$133,138 per capita,which we consider
<br /> extremely strong.The college has seen an approximate 30%increase in contact/credit hours during the past two
<br /> years;full-time enrollment has also increased but at a slower rate.Full-time equivalent students totaled 2,386 in
<br /> fiscal 2009.Management is projecting enrollment levels to stabilize or possibly decline within the next few years due
<br /> to residents of the college district moving out of the area.The college has produced at least six consecutive years of
<br /> operating surpluses in the general fund and ended fiscal 2009 with an unreserved general fund balance of$18.77
<br /> million or,in our view,a very strong 76%of expenditures.Management projects an operating surplus of$2.5 million
<br /> in the general fund for fiscal 2010.The college's overall net debt burden is,in our opinion,low at 0.8%of market
<br /> value and$1,051 per capita.Lake Michigan Community College's FMA score is"good".
<br /> Lansing City-Ingham County Joint Building Authority(AA+)
<br /> Lansing City-Ingham County Joint Building Authority's bonds are supported by the city's and county's obligation to AA Caroline West
<br /> make proportionate cash rental payments to the authority in support of debt service requirements.As the
<br /> requirements are several and there are no make up provisions,the rating on the authority is based on the weakest
<br /> rating of its two obligors,Lansing(AA+/Stable)and Ingham County(AA+/Stable).Due to the recent upgrade of
<br /> Ingham County to'AA+'from'AA',the rating on the authority has accordingly been raised to'AA+'from'AA'.In the
<br /> event that one issuer were to be rated higher than the other,the rating would then reflect the credit rating on the =
<br /> lower rated issuer.Please refer to Ingham County in this report for more information.
<br /> Lapeer County(AA)
<br /> Lapeer County serves an estimated population of 94,791 in Lapeer County and is located north of Oakland and A+ Blake Yocom
<br /> Macomb counties and the Detroit MSA.Income levels in the county are,in our opinion,good,with median household
<br /> EBI at 108%of national levels.Market value grew by an annual average of 1.5%since 2003 to$7.64 billion in fiscal
<br /> 2009,or$80,650 per capita,which we consider very strong.The county posted a$745,000 surplus in fiscal 2008,
<br /> bringing the unreserved general fund balance to$2.94 million or,in our view,a very strong 17.53%of expenditures.
<br /> Management is expecting a$900,000 surplus in fiscal 2009 and,we understand,plans to use most,if not all,of this
<br /> surplus in fiscal 2010.The county also has a budget stabilization fund that can be used for operations with a current
<br /> balance of approximately$2.2 million.Lapeer's delinquent tax revolving fund had a balance of approximately$13.5
<br /> million at the end of fiscal 2008.The county's overall net debt burden is,in our opinion,low at 2.57%of market value
<br /> and a moderate$2,332 per capita.We understand that at this time,the county has no immediate debt plans.Lapeer
<br /> County's FMA score is"good".
<br /> Livingston Educational Service Agency(A+)
<br /> Livingston Educational Service Agency is an intermediate school district that serves local school districts in Livingston A+ Kathryn
<br /> County primarily with special education services to approximately 268 students,in an area with an estimated Clayton
<br /> population of 190,000.Income levels in the agency's service area are,in our opinion,very strong,with median
<br /> household EBI at 139%of national levels.Market value declined by an annual average of 5.8%in the past two years
<br /> to$17.2 billion in 2009,or$90,718 per capita,which we consider very strong.The agency has produced five years of
<br /> operating deficits in an effort to bring reserves to a level concurrent with its formal 10%fund balance policy.At fiscal
<br /> year-end 2009,the agency had an unreserved fund balance of$715,000 in the general fund and an
<br /> unreserved-designated balance of$5.44 million in the other primary operating fund,the special education fund.
<br /> Management expects to post another planned operating deficit of approximately$300,000 to the general fund in
<br /> fiscal 2010,and expects another small deficit in the special education fund.The district's overall net debt burden is,
<br /> in our opinion,moderate at 4.3%of market value and$3,886 per capita.The district's FMA score is"standard".
<br /> South Branch of Mill Creek Intercounty Drainage District(AA)
<br /> The rating on South Branch of Mill Creek Intercounty Drainage District is based on the weakest link of its two A+ Caroline West
<br /> obligors,Lapeer County(AA/Stable)and St.Clair County(AA/Stable).Due to the recent upgrade of Lapeer County to
<br /> 'AA'from'A+',the rating on the drainage district has accordingly been raised to'AA'from'A+'.In the event that one
<br /> issuer were to be rated higher than the other,the rating would then reflect the credit rating on the lower rated issuer.
<br /> Please refer to Lapeer County in this report for more information.
<br /> Wayne(A)
<br /> Wayne serves an estimated population of 19,051 in Wayne County and is located between Ann Arbor and Detroit A Kathryn
<br /> along route 12,just 20 miles from each city.Income levels in the city are,in our opinion,good,with median Clayton
<br /> household EBI at 99%of national levels.Market value declined by an annual average of 4.8%since 2006 to$1.41
<br /> billion in 2009,or$78,132 per capita,which we consider strong.The city posted a$50,000 surplus in fiscal 2009, -
<br /> www.standardandpoors.com/ratingsdirect 7
<br /> \: J
<br />
|