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A national corporate finance firm specializing in risk management control for businesses and companies across the nation recently reaffirmed Incline Village General Improvement District as being a well-off financial organization.
On Jan. 18, Moody's affirmed an Aa3 rating of the IVGID's General Obligation Recreation Bonds and General Obligation Water Bonds in the aggregate amount of approximately $19.2 million.
According to a Moody's press release, the bonds are secured by the full faith and credit of the district within the constitutional and statutory limitations of IVGID's operating levy and are additionally secured by net revenues of the district's recreation and utility enterprises, respectively.
"The Aa3 rating reflects the district's affluent service area, growing tax base, well-managed financial operations, satisfactory coverage of debt service by enterprise fund net revenues and low debt burden," the release reads.
Ramona Cruz, director of finance, accounting and information technology for the district, said Moody's initiated the review as reassurance because of recent problems with the nation's subprime market.
Foreclosure rates on "subprime" loans - loans made to borrowers with poor credit records - are rising on a national level, and more than doubled from 2005 to 2006, according to a a February 2007 report from UBS, one of the world's top financial firms.
"With what the subprime did to all the markets, (Moody's) wanted to make sure it didn't impact the people who insure our bonds," Cruz said. "They did it to affirm that our rating is still good. It's a good thing; it says we have well-managed financial operations."
Moody's took into account a bevy of financial and demographic statistics in Incline to affirm its rating.
"The district's wealth profile is well above average, with per capita income at 239 percent ($52,521) of the state level and median family income at 156 percent ($79,079)," the release reads.
Furthermore, Moody's defines IVGID as having "well-managed financial operations," which are depicted by a general fund balance averaging more than 18 percent of general fund revenues during the last five years, with a fiscal 2007 general fund balance of 23.5 percent, or $616,000.
"The bulk of district operations, however, are funded through its utility enterprise fund and recreation enterprise fund," the release reads. "Historically, the district has not levied a property tax for debt service, as general obligation debt is entirely paid from recreation ... and utility fund revenues."
IVGID General Manager Bill Horn said he is pleased with Moody's findings.
"It's quite impressive that IVGID was able to maintain its credit status, considering ... what's going on with the credit crunch in Washington, D.C.," Horn said.
Cruz agreed.
"It's a great rating for the type of business we are," she said.
On Jan. 18, Moody's affirmed an Aa3 rating of the IVGID's General Obligation Recreation Bonds and General Obligation Water Bonds in the aggregate amount of approximately $19.2 million.
According to a Moody's press release, the bonds are secured by the full faith and credit of the district within the constitutional and statutory limitations of IVGID's operating levy and are additionally secured by net revenues of the district's recreation and utility enterprises, respectively.
"The Aa3 rating reflects the district's affluent service area, growing tax base, well-managed financial operations, satisfactory coverage of debt service by enterprise fund net revenues and low debt burden," the release reads.
Ramona Cruz, director of finance, accounting and information technology for the district, said Moody's initiated the review as reassurance because of recent problems with the nation's subprime market.
Foreclosure rates on "subprime" loans - loans made to borrowers with poor credit records - are rising on a national level, and more than doubled from 2005 to 2006, according to a a February 2007 report from UBS, one of the world's top financial firms.
"With what the subprime did to all the markets, (Moody's) wanted to make sure it didn't impact the people who insure our bonds," Cruz said. "They did it to affirm that our rating is still good. It's a good thing; it says we have well-managed financial operations."
Moody's took into account a bevy of financial and demographic statistics in Incline to affirm its rating.
"The district's wealth profile is well above average, with per capita income at 239 percent ($52,521) of the state level and median family income at 156 percent ($79,079)," the release reads.
Furthermore, Moody's defines IVGID as having "well-managed financial operations," which are depicted by a general fund balance averaging more than 18 percent of general fund revenues during the last five years, with a fiscal 2007 general fund balance of 23.5 percent, or $616,000.
"The bulk of district operations, however, are funded through its utility enterprise fund and recreation enterprise fund," the release reads. "Historically, the district has not levied a property tax for debt service, as general obligation debt is entirely paid from recreation ... and utility fund revenues."
IVGID General Manager Bill Horn said he is pleased with Moody's findings.
"It's quite impressive that IVGID was able to maintain its credit status, considering ... what's going on with the credit crunch in Washington, D.C.," Horn said.
Cruz agreed.
"It's a great rating for the type of business we are," she said.
