Fitch Affirms Cicero, New York's $2.6MM GO Bonds 'BBB'; Outlook Stable

NEW YORK--(Business Wire)--
In the course of routine surveillance, Fitch Ratings affirm its 'BBB' rating on
the Town of Cicero, New York's (the town) $2.6 million public improvement
(serial) bonds, 2006 (the bonds). The Rating Outlook is Stable.

The below average 'BBB' rating reflects an adequate financial position, past
management's decision in 2004 to not appropriate for a lease payment which it
had committed to under bonds sold by a conduit issuer, and the lack of capital
improvement plan. The rating further incorporates a low debt burden and the
limited residential and commercial development resulting from the town's
proximity to the Syracuse, NY metro area, and good transportation links. Fitch
remains concerned about the continued lack of audited financial statements given
management's expressed intentions to provide financial disclosure beyond the
minimum legal requirements.

Cicero is located in Onondaga County in central New York. The local economy is
limited but stable and a majority of residents commute to jobs in nearby
Syracuse. The town benefits from its location on Oneida Lake, with eight miles
of lakefront property, much of which is currently underdeveloped. Residential
property in the town remains affordable compared to other property in the Finger
Lakes region, which has spurred some limited development. The residential
unemployment rate has historically been below state and national averages, and
its June 2009 rate of 8.3% remained below the state and national rates of 8.6%
and 9.7%, respectively, Income levels are average compared to state and national
levels. Given the town's good access to transportation links, including close
proximity to several major highways, and its growing residential population,
continued commercial development is expected despite the current economy.

The town is not legally required to have an independent financial audit
prepared. Financial results are based on unaudited reports examined by the
Office of the State Comptroller, which does not offer the same level of scrutiny
as an independent financial audit prepared by a certified public accounting
firm. As reported in the state reports, Cicero's financial condition is
currently adequate, characterized by ample reserves and liquidity in all of its
major, tax-supported operating funds. Unreserved general fund balance of $2.2
million in fiscal 2008 equals a strong 20% of total spending. Although reserve
levels remain high, the town may draw the general fund balance down to 15% of
spending in accordance with their fund balance reserve policy.

In 2001, the Cicero Local Development Corporation (CLDC) issued $15.9 million in
lease revenue bonds to fund a recreation center. The project was expected to be
self-supporting, but ultimate security for the bonds was a pledge by the town to
make lease payments in an amount equal to debt service to the CLDC, subject to
annual appropriation. Actual project performance did not meet expectations and
the town was called upon to cover the shortfall in 2003. The following year, the
town did not appropriate the lease payment in the budget and the CLDC property
was sold to private owners in 2005. The unwillingness to make the lease payment
for the CLDC bonds, while not legally obligated, is a key credit concern
although most of the management team involved is no longer with the town. A
recent court decision ordered the CLDC to dissolve itself and pay a $390,000
fine. Overall debt levels are low and the town does not have a multi-year
capital improvement plan.

Fitch's rating definitions and the terms of use of such ratings are available on
the agency's public site, 'www.fitchratings.com'. Published ratings, criteria
and methodologies are available from this site, at all times. Fitch's code of
conduct, confidentiality, conflicts of interest, affiliate firewall, compliance
and other relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, New York
Ann G. Flynn, +1-212-908-9152
Christopher Hessenthaler, +1-212-908-0773
Cindy Stoller, +1-212-908-0526
(Media Relations)
cindy.stoller@fitchratings.com

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