Bangkok--7 Aug--Standard & Poor's
Standard & Poor's Ratings Services assigned its 'AA' rating to Si View Metropolitan Park District, Wash.'s limited-tax general obligation (LTGO) bonds. The outlook is stable.
"The rating is based on the district's economically deep and diverse service area, as well as its strong wealth levels," said Standard & Poor's credit analyst Jen Hansen. "Moreover, we believe the district's financial performance is strong, and the lack of a mandated service level gives the district expenditure flexibility."
The district's financial performance has been good. Unreserved general fund balances increased every year since 2005 to $457,000, or what we consider to be a very strong 37% of operating expenses, in 2008. The district is budgeting to end 2009 with another $30,000 surplus. In 2008 the board instituted a revenue stabilization fund that is equal to 8% of revenues. For 2009 the district plans on moving 8% of revenues into its newly created fund. Although on a nominal basis reserves will increase because of increases in expenditures, the district projects that it will end 2009 with a combined fund of about 33% of 2009 expenditures. Management's stated fund balance goal is to keep approximately five months of operating expenses on hand to enable the district to react to economic conditions.
Si View Metropolitan Park District's property tax levy for operating and maintenance is subject to various statutory limitations. The general levy rate is currently 0.44 mills; the district could levy up to 0.60 mills, which equals an additional $285,000 in revenue annually. The district reports that it plans to increase its mill levy to pay the projected $85,000 in additional debt service.
Si View Metropolitan Park District encompasses the City of North Bend, Wash., and the surrounding area. Located about 27 miles east of Seattle in the foothills of the Cascade Mountains, the district operates a community center, pool, park, ball fields, and tennis courts.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Jennifer Hansen, San Francisco (1) 415-371-5035
Chris Morgan, San Francisco (1) 415-371-5032
Key Contacts:
Americas Media Relations: (1) 212-438-6667
media_ [email protected]
Americas Customer Service: (1) 212-438-7280
[email protected]