OREANDA-NEWS. Fitch Ratings assigns an 'AA+' rating to the following Dane County, WI (the county) securities:

--\\$43.11 million general obligation (GO) promissory notes, series 2015A;
--\\$41.04 million GO capital improvement bonds, series 2015B.

The current offerings will finance various equipment purchases, capital and infrastructure improvements and fund an advance refunding of outstanding GO bonds for present value savings. The bonds and notes are expected to price via competition on Sept. 17.

Additionally, Fitch affirms approximately \\$252 million in outstanding GO bonds and promissory notes at 'AA+'.

The Rating Outlook is Stable.

SECURITY

The county pledges its full faith and credit and unlimited taxing power for the repayment of principal and interest.

KEY RATING DRIVERS

CONTINUING STRUCTURAL BALANCE: The county has restored structural balance as demonstrated by recurring positive operating margins, improved reserves, and an ability to maintain adequate financial flexibility under recent, more restrictive state law limiting revenue growth.

STRONG FISCAL MANAGEMENT: The county's financial management is strong and has improved with more conservative budgeting and recent implementation of multi-year forecasting.

FAVORABLE ECONOMIC PROFILE: The county benefits from above-average wealth levels, low unemployment, and a historically stable economic base centered on the state capital of Madison.

MANAGEABLE LONG-TERM LIABILITIES: The county's overall debt burden is moderate and amortization is rapid. Pension costs should remain manageable, given state-wide changes in employee contributions. Other post-employment benefit (OPEB) costs are minimal.

RATING SENSITIVITIES
MAINTENANCE OF FINANCIAL FLEXIBILITY AND DEBT PROFILE: Maintenance of the current rating is dependent on the county's ability to maintain structural balance and adequate financial flexibility as well as maintain moderate debt levels.

CREDIT PROFILE

Dane County is home to the state capital of Madison and is the second most populous and third wealthiest county in Wisconsin. The county's population has grown a healthy 21% since 2000, to an estimated 516,284 in 2014.

EVIDENCE OF ONGOING STRUCTURAL BALANCE

The county has restored recurring structural balance and demonstrated an ability to maintain adequate financial flexibility despite limitations on property tax revenue growth. Recurring positive operating margins over the past four years reflect a willingness to enhance general fund position with recurring and one-time revenues, economic recovery in sales and property tax collections, and more conservative budgeting.

The county exceeded budget for the past four years with successive operating surpluses which increased the unrestricted balance to \\$23.85 million or 10.9% of spending at FYE 2015. Positive operations were driven by growth in sales tax revenues; additional intergovernmental revenue in human services, which reduced general fund support; and more conservative budgeting of staffing expenses. Additional improvement in position was driven by budgeted addition to fund balance as well as the release of \\$2 million in fund balance reservations against delinquent property taxes. Positive operating performance has improved general and other fund liquidity, reduced general fund advances and other fund deficits.

Management indicates that FY 2015 general fund performance is tracking positively to budget with continued sales tax revenue growth, up 4% though August 2015 over the same period in 2014. Management projects additional budget upside from continued declines in delinquent property taxes and positive variances in human services and projects adding over \\$2 million to general fund unrestricted fund balance in FY 2015. Fitch believes that such projections are reasonable given year to date performance and the county's conservative budgeting approach.

The county implemented internal multi-year financial projections with its 2013 budget which shows manageable out-year revenue and expense levels. Fitch believes these multi-year projections will enable the county to identify potential budget challenges and allow for structural adjustments. Further, Fitch views the county's implementation of forecasting as an important tool in navigating the more restrictive revenue environment which limits property tax revenue growth and expects a stable level of financial flexibility for this above-average rating level.

STRONG, STABLE, DIVERSE ECONOMY

The county's economy is resilient and wealthy. Per capita money income, which is negatively skewed by a large student population, is nonetheless above both the state (123%) and national (120%) averages. Residents are highly educated with 47% reporting attaining higher education as compared with the national average of 29%.

The economic base is diverse, anchored by government, education, healthcare, and insurance. Top employers include the federal, state, and county governments, Madison Metropolitan School District, University of Wisconsin and affiliated healthcare providers, and Oscar Meyer Foods Corporation. Epic Systems Corp., an electronic health records company, is growing rapidly with about 7,400 employees reported in 2015, up from 3,950 in 2010. The county's unemployment rate remains low at 3.4% in May 2015, well below the state (4.7%) and national (5.5%) averages.

Taxable assessed valuation contracted modestly from 2010 through 2013 and is marginally up for 2014 and 2015. Management's current projections for 2016 are for approximately 4% assessed valuation growth with 2% from new construction and 2% from market appreciation. Fitch believes this is reasonable given recent evidence of housing market recovery and current new development activity.

MANAGEABLE LONG-TERM LIABILITIES

The county's credit profile benefits from moderate overall debt, rapid amortization (84% retired in 10 years), and manageable future borrowing plans. Overall debt is \\$3,108 per capita and 3.3% of market value. Annual debt service equaled 6% of governmental fund spending in 2014. The county's capital plans in the near term are manageable, with \\$20-25 million in annual borrowing over the next few years.

The county participates in a state-run defined benefit plan, which is funded at 100% as of its 2014 valuation or a Fitch-estimated 98% under a 7% rate of return assumption. Operating fund payments for the plan are low at \\$21.9 million or 4.8% of 2014 governmental fund spending. Recent changes in pension funding requirements may help contain cost growth, with an approximate \\$1.8 million decrease for state reductions in required duty disability pension payments as well as an increase in non-protected employee plan contributions, from 2% of payroll at the beginning of 2013 to 7% for 2014.

The county's other post-employment benefits are limited to an implicit rate subsidy, which the county funds on a pay-go basis and represented 0.3% of governmental fund spending in 2014. Had the county funded its ARC for OPEB, the payment would still have represented a low 1.2%. The county's unfunded actuarially accrued liability is minimal at less than 0.1% of market value.

The county's cost of carry of debt, pension, and OPEB is low at 11% of governmental fund spending.