S&P Rts Maricopa Cnty SD No. 31 Balsz Elem,AZ Bnds A-.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/23/98 --Standard & Poor's today assigned its single-'A'-minus rating to Maricopa County School District No. 31 Balsz Elementary, Ariz.'s G.O. refunding bonds refunding bond A bond that is issued for the purpose of retiring an outstanding bond. Issuers refund bond issues to reduce financing costs, eliminate covenants, and alter maturities. See also crossover refunding bonds, prerefunding. series 1998 dated Feb. 1, 1998 due July 1, 2013. The rating reflects: -- The district's participation in the Phoenix metropolitan area's strong and diverse economy, -- Property tax base concentration, -- Satisfactory financial position, and -- A high debt burden. The district encompasses six square miles A square mil is a unit of area, equal to the area of a square with sides of length one mil. A mil is one thousandth of an international inch. This unit of area is usually used in specifying the area of the cross section of a wire or cable. in southeastern Phoenix, with a small portion of the district overlapping Scottsdale. The district operates four elementary schools elementary school: see school. and serves a population of 30,000. Average daily attendance (2,725) has increased 11.3% during the past five years. District residents have access to a broad range of employment throughout the Phoenix area. Leading local employers include the state government, (18,000 employees), Motorola Inc. (20,000), and AlliedSignal Inc. (9,700). Employment in Phoenix continues to rise, while unemployment rates (3.4% in 1997) remain low. After experiencing four consecutive years of decline paralleling countywide coun·ty·wide adv. & adj. Throughout a whole county: found at locations countywide; a countywide search. Adj. 1. trends, district assessed valuation (AV) has rebounded. Secondary AV increased 19.2% during the past three fiscal years. Fiscal 1998 AV totals $202.9 million, with a market value of $1.09 billion. Much of the recent AV growth has been fueled by mixed-use commercial construction projects. The district's tax base is concentrated with the 10 leading taxpayers representing 38.3% of total AV. Motorola, the district's leading taxpayer, accounts for 22.8% of the tax base alone. The district's financial position strengthened in fiscals 1995 and 1996, largely due to increased property tax revenues. However, an operating deficit of $2.6 million was posted in fiscal 1997, resulting from costs associated with an asbestos abatement Noun 1. asbestos abatement - the removal of asbestos from a public building abatement of a nuisance, nuisance abatement - (law) the removal or termination or destruction of something that has been found to be a nuisance program. This one-time expenditure decreased the general fund balance to negative $1.01 million, of which negative $1.39 million, or negative 9.9% of expenditures, is unreserved. The district anticipates an operating surplus Operating surplus is an accounting concept used in national accounts statistics (such as United Nations System of National Accounts (UNSNA) and in corporate and government accounts. It is also used in macro-economics as a proxy for total pre-tax profit income. and the restoration of a positive ending general fund balance at the end of fiscal 1998. Bond proceeds will be applied to refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies series 1994 bonds, which is expected to produce $158,000 in net present value savings. Following the refunding, outstanding G.O. debt totals $24.65 million, with maturity in 16 years. 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. is high at $2,743 per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. and 7.4% of true property value. The district does not anticipate issuing additional debt in the near future. OUTLOOK: STABLE The outlook reflects the stability of the local economy, coupled with continued assessed valuation growth. Following the one-time fund balance reduction in fiscal 1997, Standard & Poor's expects the district to restore and sustain positive operating results and general fund position. -- CreditWire
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Jonathan Jacobson, New York (1) 212-208-1231
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