Fitch Ratings affirms ratings for Presidio ISD, Texas at 'AA-.
Austin: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed the following ratings for Presidio ISD, Texas at 'AA-: --Issuer Default Rating (IDR); and --Approximately $3.5 million unlimited tax bonds.
The district's strong operating profile is supported by ample expenditure flexibility and large reserves relative to expected revenue volatility. The district's enrollment is declining, weighing on revenue growth prospects. The district's long-term liability burden is expected to remain moderate given limited capital needs and the potential for a declining resource base driven by a drop in population. A combination of local property taxes and a large amount state aid supports district operations. Fitch expects the trends of slow revenue growth to continue. For the 10-year period ending in fiscal 2018, the compound annual growth rate for average daily attendance, a key driver in state funding, was about a 1% decline. The district's legal ability to raise revenues is limited, as the current tax rate is at the legal limit.
The district, which spans about 800 square miles, is located in Presidio County and serves a population of approximately 4,600. The district provides educational services to the City of Presidio and several unincorporated communities throughout the Big Bend area of west Texas. The district's tax base is primarily rooted in the utility and mining industries, and agriculture. Over the past several years, the district's tax base has experienced volatility, which has been largely linked to the mining industry.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Dec 4, 2018|
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