Bangkok--4 Feb--Standard & Poor's
Standard & Poor's Ratings Services raised its issuer credit rating (ICR) to 'AA-' from 'A-' on St. Vrain Valley School District No. RE-1J, Colo. Standard & Poor's also affirmed its 'AA-' enhanced program underlying rating (SPUR) on the district's outstanding general obligation (GO) debt. In addition, Standard & Poor's assigned its 'AA-' ICR and 'AA-' enhanced program rating to the district's series 2009A GO bonds. The outlook is stable.
"The rating actions are based on the district's significantly improved financial results, the passage of a mill levy override in November 2008 that it expects will generate about $16.5 million annually, and management's strong financial policies," said Standard & Poor's credit analyst Shannon Groff.
After the district posted general fund deficits in fiscals 2002 through 2004, total general fund balances grew annually to 10.1% ($15.5 million) for fiscal 2008 from 3.3% ($3.9 million) in fiscal 2005. The deficits were due to the district's failure to budget adequately for staffing expenses, resulting in state fiscal oversight. District officials brought in a new financial management team to improve budgeting practices and interim reporting procedures. It has established a 2% reserve policy for all funds in addition to the 3% Taxpayer's Bill of Rights (TABOR) requirement, although the allowable uses of the TABOR reserve are limited. The district's fiscal 2008 ending unreserved general fund balance was $6.76 million, or 4.4% of expenditures net of transfers, and its general fund TABOR reserve was $3 million.
The district passed a mill levy override authorization in November 2008 after failed attempts in November 2004 and November 2005. The district expects the override will generate about $16.5 million annually, providing it additional flexibility. The authorization is for a fixed millage rate; thus, the amount of the override should grow as the tax base grows.
Officials will use bond proceeds to finance the purchase and construction of a new high school, improvements and renovations to existing schools, and technology enhancements.
With a population of about 148,920, St. Vrain Valley School District No. RE-1J primarily serves northeast Boulder County and a small portion of Broomfield, Weld, and Larimer counties. Enrollment totaled 23,731 in fiscal 2009.
Complete ratings information is available to RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com; select your preferred country or region, then Ratings in the left navigation bar, followed by Find a Rating.
Media Contact:
Edward Sweeney, New York (1) 212-438-6643, [email protected]
Analyst Contacts:
Shannon Groff, San Francisco (1) 415-371-5005
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]