Summary:

Fishers, Indiana; General Obligation;

General Obligation Equivalent
Security
Primary Credit Analyst:
Andrew J Truckenmiller, Chicago (1) 312-233-7032; andrew.truckenmiller@spglobal.com
Secondary Contact:
John Sauter, Chicago (1) 312-233-7027; john.sauter@spglobal.com

Table Of Contents
Rationale
Outlook
Related Criteria And Research

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Summary:

Fishers, Indiana; General Obligation; General

Obligation Equivalent Security
Credit Profile
US$12.0 mil lse rental rev bnds (Fishers) (State Road 37 Proj) ser 2016B due 01/15/2036
Long Term Rating

AAA/Stable

New

US$12.0 mil lse rental rev bnds (Fishers) ser 2016A due 01/15/2036
Long Term Rating

AAA/Stable

New

AAA/Stable

Upgraded

Fishers GO
Long Term Rating

Rationale
S&P Global Ratings raised its rating on Fishers, Ind.'s general obligation (GO) debt one notch to 'AAA' from 'AA+'.
In addition, S&P Global Ratings raised its ratings on Fishers Redevelopment Authority's; Fishers Town Hall Building
Corp.'s; and Fishers Town Redevelopment District's lease-rental revenue debt, issued for and supported by the city,
one notch to 'AAA' from 'AA+'. The outlooks are stable.
Finally, S&P Global Ratings assigned its 'AAA' rating and stable outlook to Fishers Redevelopment Authority's series
2016A and 2016B lease-rental revenue bonds, supported by the city.
The rating action reflects our opinion of the city's very strong financial management, supported by the maintenance of
its very strong reserves and liquidity. Management has produced operational surpluses while managing capital needs
due to the continuously growing population.
A lease between the authority, as lessor, and Fishers Redevelopment Commission, as lessee, secures the series 2016A
and 2016B bonds. Lease-rental payments are payable from ad valorem property taxes. The ad valorem property tax
pledge is subject to the state's circuit-breaker legislation. The city levies all debt service levies fully and distributes any
circuit-breaker losses first across the city's nondebt service levies. The commission pays the lease directly to the
trustee. Neither rental payments nor the ad valorem-tax pledge is subject to appropriation. There is abatement risk; in
the event the leased property becomes unavailable for use, however, the commission and authority are required to
amend the lease to substitute for a different leased property of similar value. This substitution requirement mitigates
abatement risk, in our view.
The authority is issuing the series 2016A bonds for the acquisition and construction of improvements to the 116th
Street thoroughfare between Commercial Drive and Cumberland Road. It is issuing the series 2016B bonds to provide
for the acquisition and construction of improvements to State Road 37.
Fishers' bonds are eligible for a rating above the sovereign because we believe the city can maintain better credit

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Summary: Fishers, Indiana; General Obligation; General Obligation Equivalent Security

characteristics than the nation in a stress scenario. Under our criteria, titled "Ratings Above The Sovereign: Corporate
And Government RatingsMethodology And Assumptions," published Nov. 19, 2013, on RatingsDirect, we consider
state and local governments to have moderate sensitivity to country risk. The city's local property tax revenue is the
primary source of security on the bonds, which significantly limits the possibility of negative sovereign intervention in
the payment of debt or operations of the city. The institutional framework in the nation is predictable for cities,
allowing them significant autonomy and independent treasury management; there has been no history of government
intervention. Moreover, the city's very strong general fund balance as a percent of expenditures demonstrates its
financial flexibility.
The rating reflects our opinion of the city's:
Very strong economy, with access to a broad and diverse metropolitan statistical area (MSA);
Very strong management, with strong financial policies and practices under our Financial Management Assessment
(FMA) methodology;
Strong budgetary performance, with operating surpluses in the general fund and at the total governmental fund level
in fiscal 2015;
Very strong budgetary flexibility, with an available fund balance in fiscal 2015 of 40% of operating expenditures;
Very strong liquidity, with total government available cash at 77.1% of total governmental fund expenditures and
4.4x governmental debt service, and access to external liquidity we consider strong;
Weak debt and contingent liability position, with debt service carrying charges at 17.6% of expenditures and net
direct debt that is 296.3% of total governmental fund revenue, but rapid amortization, with 67.4% of debt scheduled
to be retired within 10 years; and
Strong institutional framework score.

Very strong economy

We consider Fishers' economy very strong. The city, with an estimated population of 86,747, is in Hamilton County in
the Indianapolis-Carmel-Anderson MSA, which we consider broad and diverse. The city has a projected per capita
effective buying income of 135% of the national level and per capita market value of $104,310. Overall, the city's
market value grew by 6.7% over the past year to $9 billion in 2016. The county unemployment rate was 4.1% in 2014.
Fishers is a rapidly growing community in southeastern Hamilton County, approximately 20 miles northeast of
downtown Indianapolis. Over the past few decades, the population has grown by 923% to an estimated 76,794 in 2010
from 7,508 in 1990. Fishers is far from built out; officials are projecting population will grow to more than 110,000 by
2030. Ample jobs in Fishers and throughout the Indianapolis MSA provide residents with access to a diverse
employment base. Leading local employers focus on the service and retail sectors, including:
Hamilton Southeastern Schools (2,403 employees);
Navient (1,700), formerly a Sallie Mae loan service center; and
Stanley Convergent Security Solutions (1,027).

Very strong management

We view the city's management as very strong, with strong financial policies and practices under our FMA
methodology, indicating financial practices are strong, well embedded, and likely sustainable.
The city uses historical data and projections that a consultant updates to assist with setting the annual budget. The city

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Summary: Fishers, Indiana; General Obligation; General Obligation Equivalent Security

monitors budget and investment performance monthly. Management includes investment holdings in the monthly
report. Fishers maintains a long-term fiscal plan that serves as the financial forecast, and management routinely
updates and shares the plan with the city board yearly. The city has recently adopted a formal, five-year capital plan
we understand it will update at least annually. It has adopted formal investment and debt management policies, both
of which adhere to state guidelines and limitations. The city's formal reserve policy calls for it to maintain 50% of
annual projected property tax revenue, which it adheres to currently.

Strong budgetary performance

Fishers' budgetary performance is strong in our opinion. The city had operating surpluses of 6.9% of expenditures in
the general fund and 4.9% of expenditures across all governmental funds in fiscal 2015. Our assessment accounts for
the fact that we expect budgetary results may not be as strong as 2015 results in the near term.
We have adjusted one-time transfers and capital expenses made from the general fund. Additional adjustments include
the removal of bond-financed and other one-time expenditures in total governmental funds, including various
construction funds. According to management's fiscal plan, the city expects to end fiscal 2016 with a 2% general fund
surplus, or $944,000, including the removal of a large one-time county-option income tax special distribution of
revenue, amounting to nearly $9.5 million.
Management expects, at least, break-even results in fiscal 2016 across total governmental funds after it considers
adjustments. Fishers' fiscal plan projects a general fund surplus for the next three fiscal years; because of this, we
expect general fund performance to remain, at least, adequate during that period.

Very strong budgetary flexibility

Fishers' budgetary flexibility is very strong, in our view, with an available fund balance in fiscal 2015 of 40% of
operating expenditures, or $18.5 million. We expect the available fund balance to remain above 30% of expenditures
for the current and next fiscal years, which we view as a positive credit factor.
Fishers has historically maintained very strong reserves. We expect reserves to remain very strong, indicated by
management's fiscal plan. Management indicates it could potentially draw down available reserves in future budgets
for capital costs to align with its formal reserve policy; the policy calls for the maintenance of, at least, 50% of reserves
from the ensuing fiscal year's projected property tax revenue.
Fishers will receive a one-time distribution of local-option income taxes, pursuant to Senate Act 67. Fishers expects to
receive $9.5 million before June 1, 2016; management will restrict 75% of these funds for capital projects such as road
improvements, highway equipment purchases or repairs, and aviation projects. The remaining 25% is nonrestricted,
and the city will likely deposit it into the rainy day fund. Because of this, we expect flexibility to remain very strong in
the future.

Very strong liquidity

In our opinion, Fishers' liquidity is very strong, with total government available cash at 77.1% of total governmental
fund expenditures and 4.4x governmental debt service in 2015. In our view, the city has strong access to external
liquidity if necessary.
Based on past debt issuance, we believe Fishers has strong access to capital markets to provide liquidity, if necessary.

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Summary: Fishers, Indiana; General Obligation; General Obligation Equivalent Security

We believe the city's investments are nonaggressive because Fishers primarily invests in certificates of deposit and
U.S. Treasury Bond mutual funds.

Weak debt and contingent liability profile

In our view, Fishers' debt and contingent liability profile is weak. Total governmental fund debt service is 17.6% of
total governmental fund expenditures, and net direct debt is 296.3% of total governmental fund revenue.
Approximately 67.4% of the direct debt is scheduled to be repaid within 10 years, which is, in our view, a positive
credit factor.
Potential debt plans include the issuance of approximately $12.9 million in tax-backed bonds for continued projects. In
our view, additional debt is likely as the city continues to grow and examines economic development opportunities.
Fishers' pension contributions totaled 2.9% of total governmental fund expenditures in fiscal 2015. The city made
168% of its annual required pension contribution in fiscal 2015.
Fishers makes annual contributions to the state-managed Indiana Public Employees' Retirement Fund and 1997 Police
Officers' & Firefighters' Pension & Disability Fund. The combined annual contribution, as dictated by the state,
amounted to $3.9 million in fiscal 2014.

Strong institutional framework

The institutional framework score for Indiana municipalities is strong.

Outlook
The stable outlook reflects S&P Global Ratings' opinion that it will likely not change the rating over the next two years
because it expects Fishers will likely maintain very strong reserves and liquidity. We believe a very strong
management team, which uses financial forecasting; a long-term capital plan to manage debt through the local
economic expansion; and the consistent operational surpluses in the general fund provide additional rating support.
We also believe Fishers' access to the Indianapolis MSA adds rating stability. However, if Fishers does not adhere to its
strong financial management policies, we could lower the rating. We could also lower the rating if Fishers were to
produce operational deficits that weaken budgetary flexibility.

Related Criteria And Research

Related Criteria

USPF Criteria: Local Government GO Ratings Methodology And Assumptions, Sept. 12, 2013
USPF Criteria: Financial Management Assessment, June 27, 2006
USPF Criteria: Debt Statement Analysis, Aug. 22, 2006
USPF Criteria: Appropriation-Backed Obligations, June 13, 2007
USPF Criteria: Limited-Tax GO Debt, Jan. 10, 2002
USPF Criteria: Assigning Issue Credit Ratings Of Operating Entities, May 20, 2015
Ratings Above The Sovereign: Corporate And Government RatingsMethodology And Assumptions, Nov. 19, 2013
Criteria: Use of CreditWatch And Outlooks, Sept. 14, 2009

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Summary: Fishers, Indiana; General Obligation; General Obligation Equivalent Security

Related Research
S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013
2015 Update Of Institutional Framework For U.S. Local Governments
Ratings Detail (As Of May 16, 2016)
Fishers GO
Unenhanced Rating

AAA(SPUR)/Stable

Upgraded

Fishers Redev Auth, Indiana

Fishers, Indiana
Fishers Redev Auth (Fishers) lse rental rev bnds of 2013 (Fishers) (106th Street Interchange Project) dtd 06/26/2013 due
07/15/2014-2026 2029 2031 & 0
Long Term Rating

AAA/Stable

Upgraded

Fishers Redev Auth (Fishers) lse rental rev bnds (Fishers) ser 2015 due 01/15/2035
Long Term Rating

AAA/Stable

Upgraded

Fishers Redev Auth (Fishers) lse rent rev rfdg bnds (Fishers) ser 2012 dtd 12/06/2012 due 01/15/2013-2018 2025 &
07/15/2013-2023
Long Term Rating

AAA/Stable

Upgraded

AAA/Stable

Upgraded

Fishers Redev Auth (Fishers) GO

Long Term Rating

Fishers Redev Auth (Fishers) lse rent rev bnds (Fishers) ser 2003 dtd 12/01/2003 07/15/2005 01/15 &
07/15/2006-2011 07/15/2012-2023 2025
Unenhanced Rating

AAA(SPUR)/Stable

Upgraded

AAA/Stable

Upgraded

AAA/Stable

Upgraded

Fishers Twn Hall Bldg Corp, Indiana

Fishers, Indiana
Fishers Twn Hall Bldg Corp (Fishers) GO
Long Term Rating
Fishers Twn Redev Dist, Indiana
Fishers, Indiana
Fishers Twn Redev Dist (Fishers) GO
Long Term Rating
Many issues are enhanced by bond insurance.

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors,
have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria.
Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is
available to subscribers of RatingsDirect at www.globalcreditportal.com. All ratings affected by this rating action can
be found on the S&P Global Ratings public website at www.standardandpoors.com. Use the Ratings search box
located in the left column.

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