CHICAGO - Dane County, Wis., will take competitive bids June 12 on $84.5 million of general obligation bonds and notes for various projects including a new airport parking facility and landfill expansion.
Ahead of the sale, Moody's Investors Service revised the county's outlook to stable from negative on its Aa1 rating. The rating applies to $303 million of debt.
The deal is being offered in three series: an A series for $35.4 million of GO promissory notes, a B series for $28.8 million of GO corporate purpose bonds, and a C series for $20.5 million of GO notes.
Proceeds of the A and B series will finance capital improvement projects throughout the county including at the county zoo and an expansion of the county's landfill.
The C series will finance the construction of an airport parking facility. The county expects to cover repayment of the C series notes with airport parking facility revenues.
Moody's said its rating reflects the county's large and stable economic base anchored by the state capital of Wisconsin, strong surplus general fund operations, and a manageable debt profile with a modest unfunded pension liability.
The county's challenges include a history of narrow reserve levels, very limited liquidity access, and state-imposed levy limits.
"The stable outlook reflects the strength of the county's tax base, which has maintained a stable economic profile and well below average unemployment levels throughout the recent economic downturn and generated multi-year growth in sales tax revenues," Moody's wrote.
Fitch Ratings affirmed the county's AA-plus rating and stable outlook. "Fitch believes that the county has restored structural balance and demonstrated an ability to maintain adequate financial flexibility despite a 2011 state law that limits growth in property tax revenue," Fitch wrote.
The county's credit profile benefits from moderate overall debt, rapid amortization, and manageable future borrowing plans, Fitch said.
The county participates in a state-run defined benefit pension plan, which is well funded at nearly 100% as of its 2012 valuation. The county's other post-employment benefits are limited to a rate subsidy. The county's cost of carry of debt, pension, and OPEB is low at 9.9% of governmental fund spending, Fitch said.
