Bangkok--3 Nov--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'A-' rating to the town of Buckeye, Ariz.'s $2.79 million improvement bonds (Jackrabbit Trail Sanitary Sewer Improvement District). The outlook is stable.
"The rating is based on the town's efforts to sustain a good financial position despite projected declines in sales tax and state-shared income tax," said Standard & Poor's credit analyst Paul Dyson. "The town of Buckeye's covenant to make temporary loans to the district should special assessment collections be deficient provides additional security. We also recognize management's willingness to make substantial budget adjustments given the town's current period of economic retraction, as well as the town's moderate debt burden and limited additional bonding plans."
The bonds are being issued to finance the costs of various sewer improvements, including sewer treatment plant capacity and related improvements within the Jackrabbit Trail Sanitary Sewer Improvement District.
Located 30 miles southwest of Phoenix, Buckeye encompasses a very large 200 square miles. The town's population has soared to 50,143 from just 8,497 in 2000. The district encompasses 625 acres of land within the town, with 425 acres or 68% of the district zoned or to be zoned for residential development. The district consists mostly of vacant land, although 10 acres of commercial property have existing businesses and an additional 23 acres have approved on-site plans ready to proceed with development. Construction of the sewer improvements is slated to being upon bond closing, estimated for mid-November 2009.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
USPF Criteria: "Special-Purpose Districts," June 14, 2007
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Bea Chiem, San Francisco 1(415) 371-5070