The Rating Outlook is Stable.
The outstanding ULTs are secured by an unlimited ad valorem tax levied against all taxable property within the district. In addition, the bonds are secured by the Texas PSF guarantee, whose bond guarantee program is rated 'AAA' by Fitch.
KEY RATING DRIVERS
SOUND FISCAL PROFILE: The district's solid financial performance is reflected in ample general fund balances. The tenured management team typically outperforms its structurally balanced budget.
STABLE ECONOMY: The largely rural economy continues to transition into a residential community, driving steady tax base growth.
MODERATE DEBT: Overall debt levels are manageable, as the district borrows infrequently. The amortization rate is well below average, but infrastructure capacity is adequate and officials do not anticipate issuing debt in the next several years.
SHIFT IN FUNDAMENTALS: The rating is sensitive to shifts in fundamental credit characteristics including the city's strong financial management practices. The Stable Outlook reflects Fitch's expectation that such shifts are unlikely.
Mabank ISD is located in an agricultural and oil producing area approximately 50 miles southeast of
The three principal communities in the district are
Market value appreciated by a compound annual growth rate of about 4% over the past seven years ending in fiscal 2014. The district attributes much of the growth to the development surrounding
The district's full value per capita is moderate at
STRONG FINANCIAL PERFORMANCE
Consistent financial results over the past five fiscal years reflect prudent financial management. The district instituted cost savings to mitigate fiscal 2012/2013 state funding cuts. These included position reductions, a salary freeze during fiscal 2012, and supply and travel budget reductions. A fiscal 2013 net operating surplus of
The district expects to end fiscal 2014 with like reserves. Reinstatement of
Overall debt is moderate at
Carrying costs for debt service, pensions and other-postemployment benefits (OPEB) are low at 11.3% of fiscal year 2013 governmental spending. The state's funding of school districts' payments to the
The judge agreed to reopen testimony after the
Additional information is available at 'www.fitchratings.com'.
In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope,
--'Tax-Supported Rating Criteria' (
--'U.S. Local Government Tax-Supported Rating Criteria' (
Tax-Supported Rating Criteria
U.S. Local Government Tax-Supported Rating Criteria
Source: Fitch Ratings
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