The 'AAA' rating on the bonds is based on a guaranty provided by the
The bonds are scheduled for negotiated sale the week of
In addition, Fitch also affirms the following ratings:
The Rating Outlook is Stable.
The bonds are direct obligations of the district and are secured by an unlimited ad valorem tax pledge of the district. In addition, the bonds are secured by the PSF guarantee.
KEY RATING DRIVERS
STRONG FINANCIAL FLEXIBILITY: Conservative fiscal management practices have enabled the district to build healthy financial reserves.
DIVERSE AND GROWING TAV: Solid taxable assessed valuation (TAV) gains reflect home price appreciation and the addition of new properties to the district's diverse and wealthy tax base.
ELEVATED BUT MANAGEABLE DEBT: Overall debt is above average. Carrying costs, including debt service, pension contributions and other post-employment benefits (OPEB), place only a moderate burden on the district's budget and reflect strong state support of pension obligations.
STRONG LOCAL ECONOMY: The district benefits from its location in the broad and diverse economy of the
STRONG FINANCIAL PROFILE: Maintenance of the district's strong financial profile is a key credit mitigant to ongoing state funding uncertainties and wealth transfer provisions.
The city of
STRONG LOCAL ECONOMY IN
The district's location in the
The district's tax base is diverse and without concentration. Fiscal 2014 market value per capita of
The district conservatively projects a 6% to 8% gain in fiscal 2015 TAV based on very high preliminary values from the appraisal district. The strong TAV growth reflects significant residential and commercial development currently underway throughout the district, including within the
CONSERVATIVE FISCAL MANAGEMENT
The district is considered property wealthy and relies almost entirely on local property taxes. Funding is subject to the state formula and a portion of the district's operations and maintenance (O&M) levy is recaptured by the state for distribution to less wealthy school districts. These payments totaled
Financial performance and reserve levels are very strong despite the large recapture payments associated with the state funding formula. The district posted a
ELEVATED DEBT; ONGOING NEEDS
Fitch expects the district's overall debt, 4.8% of market value, to remain elevated as the district is only about 70% built out. Ample capacity remains under the state's statutory interest and sinking fund (I&S) new issuance cap of
Voters authorized a
This series 2014 issuance, the second from the
LIMITED PENSION; OPEB OBLIGATIONS
The district's pension liabilities are limited to its participation in the state pension plan administered by the Teachers Retirement System of
The judge agreed to reopen testimony in
Additional information is available at 'www.fitchratings.com'
In addition to the sources of information identified in the Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope,
--'Tax-Supported Rating Criteria', dated
--'U.S. Local Government Tax-Supported Rating Criteria', dated
Tax-Supported Rating Criteria
U.S. Local Government Tax-Supported Rating Criteria
Rebecca Meyer, +1 512-215-3733
Shane Sellstrom, +1 512-215-3727
Amy Laskey, +1 212-908-0568
Source: Fitch Ratings
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