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Fitch Rates San Ysidro SD, California $34MM GOs 'A'; Outlook Stable.

NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
 -- Fitch Ratings Fitch Ratings

An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris.
 assigns an 'A' rating to $34 million San Ysidro School District (the district), California general obligation bonds, election of 1997, series E. The bonds are expected to sell via negotiation with Stone & Youngberg LLC (Logical Link Control) See "LANs" under data link protocol.

LLC - Logical Link Control
 during the week of November 12. In addition, Fitch affirms the rating on approximately $56 million of outstanding general obligation bonds at 'A'. The Rating Outlook is Stable.

The 'A' rating reflects the district's continued sound financial operations, good general fund balances, and strong, but moderating, assessed valuation (AV) growth. These factors are somewhat offset by high debt levels, the potential for further capital pressures from planned residential development, ongoing labor issues, and recent enrollment fluctuation Fluctuation

A price or interest rate change.
. Although located in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay.  County, the district facilities did not sustain any damage as a result of the recent fires, although schools were closed for a week. Furthermore, due to the state's declaration of emergency, districts in fire-affected areas will receive full state attendance-based funding and will not have to extend the school year to compensate for the closure.

Student enrollment has fluctuated significantly and dropped nearly 6% this school year to its lowest level in six years. If enrollment does not return to projected growth rates Growth Rates

The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.

Remember, historically high growth rates don't always mean a high rate of growth looking into the future.
 in the 2009 school year, per pupil revenues would be negatively impacted, challenging the district's positive operations. In order to prepare for this possibility, district management is planning to build general fund reserves in fiscal 2008 to allow more time for planning and adjusting to new funding levels. The district expects enrollment growth to return to recent healthy levels as management forecasts continued long-term residential growth including a planned development in the Otay Mesa area. However, Fitch believes that the overall downturn in the national housing market may lead to some scaling back or delays in this development project.

Financial operations of the district are sound, marked by good general fund balances. Audited data for the past three fiscal years showed an increase in fund balances as growth in revenues outpaced expenditures. The fiscal 2006 fund balance was a very high $8.5 million, or 21.3% of total spending with the unreserved portion of the fund balance at a more moderate $1.8 million, or 4.6% of total spending. Unaudited year-end data for fiscal 2007 showed an increase in unreserved fund balance to about 5.3% of total spending. The fiscal 2008 budget projects a $3.5 million surplus, but labor contracts for the current fiscal year are still being negotiated. Both the teachers and the classified employees are currently working without contracts, although management expects to reach agreements this calendar year with moderate salary increases.

The bonds represent the fifth installment from a $250 million authorization The right or permission to use a system resource; the process of granting access. See access control.  approved by more than 86% of voters in 1997. The bond authorization limits the tax levy to repay the bonds to no more than $0.10 per $100 of AV, thereby keeping debt issuance affordable. Bond proceeds will be used to fund land acquisition and the construction of a new elementary school elementary school: see school.  in the Ocean View Hills area. State matching funds Noun 1. matching funds - funds that will be supplied in an amount matching the funds available from other sources
cash in hand, finances, funds, monetary resource, pecuniary resource - assets in the form of money
, district funds and proceeds of a recent Qualified Zone Academy Bonds (QZABs) sale and an upcoming issuance of certificates of participation (COPs) are expected to supplement project costs. Bond proceeds may also fund modernization modernization

Transformation of a society from a rural and agrarian condition to a secular, urban, and industrial one. It is closely linked with industrialization. As societies modernize, the individual becomes increasingly important, gradually replacing the family,
 projects for various school facilities.

Along with the growing residential community, the district area has a large industrial and commercial presence due to its proximity to the Mexican border. AV has risen at a fast pace since fiscal 2003, averaging 16.4% annual growth, although AV growth in fiscal 2008 was a more moderate 9.6%, reflecting the slowing of the overall housing market. The tax base has no significant concentration with the top 10 taxpayers accounting for 9.6% of fiscal 2008 AV. Located 12 miles south of downtown San Diego and bordering Mexico, the district covers 29 square mile and has an estimated population of 30,305. Income levels are below average, increasing concerns about the high debt levels.

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 of such ratings are available on the agency's public site, 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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Publication:Business Wire
Date:Nov 5, 2007
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