Bangkok--15 Jan--Standard & Poor's
Standard & Poor's Ratings Services raised its underlying rating (SPUR) to 'A' from 'A-' on Maricopa County Union High School District No. 214 (Tolleson), Ariz.'s outstanding general obligation (GO) bonds, and assigned its 'A' rating to the district's $17.9 million series 2009B school improvement bonds. The outlook is stable.
"The raised rating reflects the district's strong tax base growth and consistent financial performance, including the maintenance of adequate budget balance carry-forwards during a period of substantial enrollment growth," said Standard & Poor's credit analyst Paul Dyson. An offsetting credit weakness is the relative decline in financial flexibility given the unsuccessful renewal of the district's 10% budget override during the November 2007 election.
The district's economy continues to diversify away from agriculture and toward commercial and light manufacturing as Phoenix's commercial growth flows into the district's undeveloped land. Assessed value (AV) has grown rapidly; secondary AV totaled $1.6 billion for fiscal 2009 and is up over 27% from the prior year and 194% since 2004, or 24% annually. Market value reached $12.2 billion in 2009, or a strong $76,728 per capita. The top 10 taxpayers, many of which are distribution or warehousing facilities, accounted for a diverse 9.3% of secondary AV as of 2009.
General fund operations remain healthy. Audited fiscal 2007 general fund results showed a surplus of $1.2 million and a good general fund balance of $11.1 million, or 26% of expenditures. The district included a 3.7% budget balance carry-forward in unaudited fiscal 2008 (as a percentage of its revenue control limit) and plans a 1.8% carryover for fiscal 2009; the maximum allowed by state statute is 4%. The district targets a 2.5% carryover in fiscal 2010. In the November 2007 election, the district lost its 10% maintenance and operations override, which provided about $3.2 million per year. In response, in fiscal 2009 the district began phasing it out by one-third, or $1.1 million, and will cut an additional $1.1 million in fiscal 2010. The district established a budget workgroup to bridge the gaps, instituting cuts, reallocating full-time equivalents, and creating other efficiencies.
Bonds proceeds will fund various infrastructure needs throughout the district, including renovations and various special projects.
Maricopa County Union High School District No. 214 (Tolleson) serves about 160,000 residents and encompasses 102 square miles in Tolleson and portions of Avondale, Glendale, and Phoenix. The district's average daily membership totals 8,938 in 2009.
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Media Contact:
Edward Sweeney, New York (1) 212-438-6643, [email protected]
Analyst Contacts:
Paul Dyson, San Francisco (1) 415-371-5079
Misty Newland, San Francisco (1) 415-371-5073
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]