Fitch Rates Dane County, Wisconsin's $22.1MM GOs 'AAA'

-- $4,835,000 general obligation (GO) promissory notes, series 2007B;

-- $17,275,000 GO corporate purpose bonds, series 2007C.

The notes and bonds are scheduled for competitive sale on Dec. 6, 2007, with Public Financial Management, Inc. serving as the county's financial advisor. The notes and bonds constitute a general obligation of the county, secured by its unlimited taxing powers. Proceeds will finance a portion of the county's capital plan, including conservation projects and the construction of a nursing home. In addition, Fitch affirms the rating on the county's approximately $208 million outstanding GO debt at 'AAA'. The Rating Outlook is Stable.

The 'AAA' rating reflects the county's growing tax base, consistently strong economic performance, solid financial management, and moderate debt levels. A highly skilled labor force, good schools and neighborhoods, and a favorable tax climate continue to attract new businesses and residents. The large governmental presence adds to the area's economic stability. The sustained level of investment and resultant growth in property values has allowed the county to maintain high public service standards while reducing tax rates. By promoting operating efficiencies, limiting financial risks, and financing most infrastructure needs through internal sources, the county has increased its financial flexibility. Direct county debt levels are low, and overall debt levels are moderate and should remain stable over the next few years as the expanding economy supports relative debt service requirements.

Located in the south-central portion of the state and home to the state capital of Madison, Dane County is the second most populous county in Wisconsin and the third wealthiest county in the state, with per capita personal income equal to 120% of the state average in 2005. Building on a stable base of government, education, and health care employment, the county's economy continues to grow and diversify. Growth within service sector employment led to a low unemployment rate of 3.4% in September 2007, compared to the state's 4.6% rate in the same month. Population gains and the strong economic picture increased the aggregate market value of property within the county by a rapid 9% annually over the past decade. Although the county's residential housing market has slowed in the past year and foreclosures have increased modestly, the commercial segment of the tax base continues to perform strongly.

County finances are solid due to a diverse and growing revenue stream and sound cost control measures. The administration is committed to enhancing social welfare and public safety programs, while maintaining strong management practices that limit budgetary spending growth. The general fund balance equaled $27 million in 2006 (Dec. 31 year-end) or 14.5% of spending, a slight decline from 2005's $29 million (16.8%) due to modest increases in staffing levels and growing correctional facility costs. Fitch expects break-even general fund performance in 2007.

Direct debt levels are low at $329 per capita and 0.3% of full market value. Including overlapping debt, total debt equals $2,833 per capita and 2.7% of full market value. Debt amortization is very rapid, with about 74% of principal retired within 10 years. The county has completed most of its larger capital projects and future debt issuance will be limited to financing a new radio communications system. Although the county once considered debt issuance to finance jail expansion, management has decided to pursue operating efficiencies and alternative sentencing methods to eliminate the need for a new structure.

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