Bangkok--14 Sep--Standard & Poor's
Standard & Poor's Ratings Services raised its long-term rating and underlying rating (SPUR) on King County Rural Library District, Wash.'s outstanding debt to 'AA' from 'AA-'. At the same time, Standard & Poor's assigned its 'AA' rating to the district's unlimited-tax general obligation bonds, series 2009. The outlook is stable.
"The rating actions are based on the district's economically deep and diverse tax base and economy and consistently strong financial operations," said Standard & Poor's credit analyst Jen Hansen.
The district's financial performance has been strong. The district ended audited 2007 with an unreserved balance of $23.9 million, or 30% of expenditures. Since 2003, the district has had at least 21% of expenditures in its unrestricted fund. Unaudited actual results for the fiscal year ended Dec. 31, 2008, show that the district drew down fund balances to $21.7 million, or a still strong 25% of expenditures, due to approximately $4 million in capital expenditures. Under voter-approved Initiative 747, taxing jurisdictions' operating revenues are limited to 1% annual growth, plus allowances for new construction. Voters may override this limitation, one year at a time. The most recent of the district's voter-approved levy lid lifts increased property tax revenues for fiscal 2003 by 17.9% over fiscal 2002. Typically, after a levy lid lift, management spends the additional one-time revenue boost over several years before asking voters to approve another levy lid lift. The district plans on going to voters in February 2010 to ask for a 16%-17% lift to raise rates back to the maximum rate of $0.50 per $1,000 of AV. The district's fiscal 2009 budget projects a spend-down to about $17 million, or a still strong 20% of expenditures, in part because of a one-time transfer of $1.4 million to capital expenditures. The general fund balance will remain well above the district's unofficial target of $10 million.
The district operates 44 branch libraries that serve a residential population of approximately 1.2 million in numerous cities within King County (AAA) as well as unincorporated areas of the county. For 2009, assessed value per capita is what we consider to be very strong at $199,000.
RELATED RESEARCH
USPF Criteria: "GO Debt," Oct. 12, 2006
USPF Criteria: "Financial Management Assessment," June 27, 2006
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Media Contact:
Ana Sandoval, New York (1) 212-438-5095, [email protected]
Analyst Contacts:
Jennifer Hansen, San Francisco 415-371-5035
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]