NEW YORK--(BUSINESS WIRE)--Fitch Ratings assigns an 'AA' rating to the city of Columbia, Missouri's (the city) $26,795,000 special obligation revenue improvement bonds (downtown government center project - annual appropriation obligation), series 2008B. The bonds are scheduled for competitive sale on May 5. The bonds are special limited obligations of the city, payable from the city's annual appropriation of funds. Proceeds will finance the construction, expansion and renovation of the city's downtown government center. Fitch also affirms the 'AA' rating on the city's approximately $60 million outstanding electric utility special obligation bonds. The Rating Outlook is Stable.The rating is based on the city's diverse and growing economy, anchored by the University of Missouri, strong financial practices and performance evidenced by steady tax funding of the capital program and healthy general fund reserves, and low debt levels, with all direct debt supported by user fees and dedicated capital levies.
Located in central Missouri along Interstate 70, the city's diverse economic base includes a mix of government, education, health care and financial services. The vibrant university community has created a highly skilled workforce-about 58% are college graduates, compared with 27% nationally-which has promoted basic and applied research and attracted considerable private business investment. The unemployment rate of 5.0% in
February 2008 is lower than the state (6.0%) and national rates (5.2%) but slightly higher than county and MSA (4.2% and 4.3%, respectively). Including higher education and governmental property, about 27% of the city's land area is tax-exempt. Nonetheless, tax base growth averages 7.6% since 2001. Fitch expects growth rates to moderate in the next few years as residential building activity has slowed.
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