Fitch Rates Anaheim City School District, California's $44.9MM GOs 'AA'; Outlook Stable.SAN FRANCISCO San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden -- Fitch assigns an 'AA' rating to approximate $44.9 million Anaheim City School District (County of Orange, California The City of Orange is located in Orange County, California, United States. It is approximately 3 miles (6 kilometers) north of the county seat, Santa Ana, and approximately 32 miles (52 kilometers) southeast of Los Angeles. ) General Obligation (GO) Bonds, Election of 2002, Series 2007. Bond proceeds are the final series in the 2002 bond authorization and will be used for the construction and modernization projects. The bonds are scheduled to sell via negotiation led by UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control on or about Jan. 22, 2007. In addition, Fitch affirms the 'AA' rating on approximately $65.7 million in outstanding GO bonds. The Rating Outlook is Stable. The 'AA' rating reflects Anaheim City School District's (the district) sound financial operations including strong reserve levels, good assessed valuation and general economic growth, and low debt levels. Credit concerns are centered on the district's declining enrollment and taxpayer concentration, specifically by The Walt Disney Company (senior unsecured notes rated 'BBB+', with a Stable Outlook by Fitch). While financial operations remained sound despite enrollment losses, a continued downward trend could pressure financial strength. The district encompasses approximately 22 square miles in the downtown area of Anaheim (the city), California, approximately 28 miles southeast of downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or in northern Orange County. District enrollment, at 19,941 for fiscal 2007, is down from its peak in 2002 of about 22,400; however, the district expects the decline to slow and enrollment to stabilize over the next two to three years, particularly once it is able to transition from year round schools to the traditional 10 month calendar. A portion of the 2002 bond authorization has been focused on expanding capacity at school facilities as well as the construction of a new campus. Financial operations at the district remained healthy in spite of the declining enrollment and reduced state support. The district's reserve for economic uncertainties has remained above 5.2% of spending since fiscal 2001. Cash balances are good; reductions in total fund balance in fiscal 2002 and 2003 primarily reflect transfers to a district construction reserve account. Fiscal 2006 operations resulted in a moderate drawdown Drawdown The peak to trough decline during a specific record period of an investment or fund. It is usually quoted as the percentage between the peak to the trough. Notes: on the fund balance of $1.2 million. However, the district will face increased financial pressure in the coming years unless enrollment stabilizes. The fiscal 2007 budget projects a deficit of about $8.7 million, which would result in an ending fund balance level of about $19.5 million, a still good 11.4% of spending. Multiyear projections through fiscal 2009 include a reserve for economic uncertainties of at least 5% of spending. The district area economy is characterized by its location in fully developed downtown Anaheim; overall income levels are lower than county and state levels, reflecting significant a significant service sector job base. The lower per capita income Noun 1. per capita income - the total national income divided by the number of people in the nation income - the financial gain (earned or unearned) accruing over a given period of time levels and higher median household buying income reflect the higher than average persons per household. The city's unemployment rate declined to 4.9% in 2005, but is still above the county's 3.8% for the same year. The district's economy is dominated by Disneyland and related Disney attractions - The Walt Disney Company accounts for a highly concentrated 23% of assessed value. Assessed valuation growth has been strong, averaging 10.2% since fiscal 2000. Low direct debt levels - 0.6% of assessed valuation - stem from limited debt issuance and regular pay-as-you-go capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . Even including overlapping debt Overlapping Debt The debt of a political entity such as a state where its tax base overlaps the tax base of another political entity such as a city within the state. Notes: If the issuer of a municipal bond has overlapping debt, it should be considered. , the debt to assessed value ratio is low at 1.8%. Principal amortization of the 2007 and outstanding bonds is slow, at only 26% in ten years. The district has no additional bond authorization. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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