St. Clair County receives excellent credit rating
Published 11:54 am Thursday, July 5, 2012
Despite a weak economy, St. Clair County remains strong with a growing economic base, low debt levels and a declining unemployment rate.
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According to a report recently released Standard & Poor Ratings Services (S & P), the economic outlook is stable for the county. St. Clair County is Alabama’s fastest growing county with an estimated population of 85,519 and averages four percent growth annually.
S & P reports good income levels for the county with an average household effective buying income equal to 91 percent of the national level.
County unemployment declined to 6.6 percent in March 2012 from its 11.8 percent high in January 2010. The current unemployment rate remains below the 7.2 percent state average and 8.2 percent national average.
“A diverse revenue stream has helped produce strong financial performance,” the S &P report said.
In 2010 property tax revenues account for 47 percent of general fund revenues and sales tax revenue of 35 percent. As of March 2012 sales tax revenues are coming at four percent above the budgeted amounts.
For fiscal year 2012, the county budgeted $1.4 million from reserves to provide funding for the county’s new hospital and acquiring new property. The S & P Report said, “The projected downturns for fiscal years 2011 and 2012 would bring the general fund balance to approximately $6.5 million, which we still consider very strong at 38 percent of expenditures.”
The county’s overall debt levels are reported to be very low at $433 per capita (0.9 percent market value. Amortization is average with 57 percent of principal due to be retired in 10 years, 100 percent in 20 years. There are no plans to issue additional debt within the next 12-18 months.
“I am very pleased with our credit rating in light of current economic turmoil,” County Commission Chairman Stan Batemon said. “We’ve remained very stable over the years and done so despite much criticism.”