Fitch Ratings recently assigned an AAA rating to to Birmingham’s recreation bond issue. They said the outlook for the city was stable. We see this analysis as good news for the city. A few highlights from the press release:
Significant reinvestment in the city’s residential and commercial districts has generated a 10% annual growth rate in the property tax base since fiscal 1998. Although tax base growth has slowed recently, the city’s 10 largest taxpayers continue to expand steadily and represent approximately 9% of total assessed valuation. Also, Birmingham retains capacity in its tax rates, as its operating levy remains below the maximum permitted rate.
The city’s financial position is consistently strong, as growth in property tax receipts, averaging 7% annually since fiscal 1999 (June 30 year-end), supported a total general fund balance equal to $8.8 million, or 35.3% of expenditures and transfers out for unaudited fiscal 2006 results. The general fund recorded operating surpluses of between $1 million to $1.5 million in each of fiscals 2004 through 2006, even after transfers out of $3 million to $4 million annually to its streets funds and other areas of the capital plan. These strong ending results are near the top end of the city’s fund balance policy of maintaining at least 10% of annual general fund expenditures, but not to exceed three months of general fund expenditures.
[tags]birmingham michigan[/tags]
Written by Maureen Francis
SKBK Sotheby's International Realty, 248.430.4450
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