OREANDA-NEWS. Fitch Ratings takes the following rating action on the Onondaga County Industrial Development Agency, New York's (the IDA) bonds:

--\\$2.5 million civic facility revenue bonds (Onondaga Free Public Library Project), series 2008 affirmed at 'A'.

The Rating Outlook is Stable.

SECURITY
The bonds are payable from lease payments made by the Onondaga Free Library, NY (the library) from the levy of a dollar-fixed property tax upon all real property within the town of Onondaga (the town).

KEY RATING DRIVERS

STRONG DEBT SERVICE COVERAGE: The dedicated library tax which secures the bonds is set at a fixed dollar amount, which provides strong debt service coverage throughout the life of the bonds. No additional bonds supported by the pledged tax are permitted under the indenture.

STABLE ECONOMY: The local economy has solid socioeconomic indicators and stable housing prices.

LACK OF AUDITED FINANCIAL REPORTING: The library is not legally obligated to maintain audited financial statements.

RATING SENSITIVITIES
WEAKENED COLLECTIONS: A large decline in property tax collections could cause downward rating pressure on the IDA bonds. The Stable Outlook reflects Fitch's expectation that such shifts are highly unlikely.

CREDIT PROFILE
The library primarily serves the town, as well as small portions of three neighboring communities. The town serves as a bedroom community to the city of Syracuse (general obligation bonds rated 'A' by Fitch).

STRONG PAYMENT MECHANISM AND COVERAGE
The town, on behalf of the library, annually levies and collects a \\$475,000 library tax as a separate line item on the town's tax bill. Full tax collections are guaranteed by the county. However, delinquent tax receipts are returned to the county on April 1, one month after the March 1 debt service payment date, so the guarantee is of little value for payment of current-year debt service. Pursuant to a fiscal agency agreement between the IDA, the town, the library and the trustee, the town remits the library tax directly to the trustee for payment of debt service for the benefit of bondholders. Net library taxes are then forwarded to the library for operational purposes after debt service requirements are met.

The library tax levy provides 2.5x maximum annual debt service (MADS) coverage and can only be increased by voter referendum. The tax cannot be reduced below an amount necessary to cover debt service. Should tax receipts be insufficient and payment from the town not be received by March 1, the library is obligated to use available cash on hand, if any, to pay debt service.

SOLID UNAUDITED RESULTS
The library is an independent corporate body and free association library chartered by the New York State Education Department. The library is not required to maintain audited financial statements, only bookkeeping records. Library operations are supported from the net library tax levy (after debt service), which accounts for over 60% of total operating revenues. Operating funding is also provided by three local school districts that accounted for over 30% of 2014 operating revenues. The library has consistently achieved roughly balanced operations. As of Dec. 31, 2014, unaudited results show the library had almost \\$480,000 (61% of spending, or 2.5x MADS) of cash on hand.

SOLID TOWN ECONOMIC INDICATORS
Wealth levels within the town are above average. Employment data, available only at the county level, show a 5.1% unemployment rate for March 2015, down from 6.1% a year prior. Housing prices in the town have been stable and were largely unaffected by the recent nationwide economic downturn.

MANAGEABLE LONG-TERM LIABILITIES
The library constructed a new facility in 2010, resulting in manageable capital needs for the near- and medium-term. The library does not have a formal capital improvement plan, and has no plans to issue additional debt. No additional bonds can be issued supported by the levy used to repay the series 2008 bonds. The library does not have material obligations for pensions or other post-employment benefits.