|
Surveillance Results In Rating Actions On 37 Midwest Issuers
<br /> liquidity,and sufficiency of the assets pledged by the city.For more information on the GO rating on the city,please
<br /> see the analysis"Columbus,OH;General Obligation"published Oct.29,2009.
<br /> Hamilton Local School District(AA-)
<br /> Hamilton Local School District is in Franklin County,eight miles south of Columbus,Ohio.In our opinion,income A Caroline West
<br /> levels in the district are good,with median household EBI at 95%of the national level.Enrollment(average daily
<br /> membership)steadily increased to 3,236 students in 2008 and management anticipates adding 80 students annually
<br /> in the near term.We believe the district has managed its finances well despite four past unsuccessful operating levy
<br /> attempts.The district ended fiscal 2008(June 30),on a generally accepted accounting principles(GAAP)basis of
<br /> accounting,with an unreserved general fund balance of$2.3 million or 10.9%of expenditures,which we consider
<br /> strong.On an unaudited cash basis,the fiscal 2009 unreserved cash balance was$5.6 million or,in our opinion,a
<br /> very strong 24.5%of expenditures.District voters last approved an operating levy in 1993,and we understand that
<br /> the district does not intend to place a new levy on ballot in the near future.The district's recent five-year forecast
<br /> (2010-2014)indicates positive cash balances in altfive years.We view overall net debt moderate at$2,198 per capita
<br /> and 4.1%of market value.We understand that there are no additional debt plans at this time.The district's FMA
<br /> score is"good".
<br /> Independence Local School District(AA-)
<br /> Independence Local School District is located within the city of Independence,approximately 15 miles south of AA- Caroline West -
<br /> Cleveland.We consider income levels of the district strong with median household and per capita EBI at 128%and
<br /> 119%,respectively,of the national levels.Enrollment has been stable in the past five years and totaled 1,126 in the -
<br /> 2009-2010 school year.On a GAAP basis,the district posted operating surpluses in the past two years leading to a
<br /> total general fund balance of$1.5 million at fiscal year-end 2009,or a strong,in our opinion,9.5%of expenditures,of this amount,negative$356,992 was unreserved,or negative 2.3%of expenditures.As measured on a cash basis,the
<br /> unreserved cash balance totaled$1.5 million or,in our view,a strong 10.1%of expenditures in fiscal 2009.A 5.5 mill
<br /> emergency levy was renewed in November 2007 for three years which,according to the five-year forecast
<br /> (2010-2014),should keep the fund balance positive through fiscal 2011.We view the district's overall net debt
<br /> moderate at$3,866 per capita but low at 1.8%of market value.We understand that there are no additional debt
<br /> plans at this time.The district's FMA score is"good".
<br /> Licking Valley Local School District(AA)
<br /> Licking Valley Local School District is located four miles east of Newark,20 miles northwest of Zanesville and 40 A- Caroline West
<br /> miles west of Columbus.The district's median household EBI is,in our view,good at 100%of the national level.
<br /> Enrollment as measured by average daily membership totaled 2,109 in 2008 and management anticipates enrollment
<br /> to remain stable in the near future.We believe that the district has managed its finances well over the years,even
<br /> though the last levy authorization(for an income tax)occurred in 1993.On a GAAP basis,the unreserved fund balance
<br /> was at$2.9 million or,in our opinion,a very strong 18.8%of expenditures at the end of fiscal 2009.On a cash basis,
<br /> the unreserved cash balance totaled$3.7 million or 22.9%of expenditures,which we view as very strong.
<br /> Management's five-year forecast(2010-2014)shows the cash balance remaining positive through fiscal 2013.We
<br /> believe that the district has a limited need to go back to the voters,given that it is operating at the 20-mill floor and
<br /> collects an income tax.We consider overall net debt low at$1,405 per capita and 2.7%of market value.We
<br /> understand there are no additional debt plans at this time.The district's FMA score is"good".
<br /> Painesville City Local School District(A)
<br /> Painesville City Local School District is located in Lake County,about 29 miles east of downtown Cleveland.Serving A Caroline West
<br /> approximately 17,000 residents,the district experienced enrollment increases in the past two years to reach 3,235
<br /> students in 2008-2009.Income levels in the district are,in our view,adequate,with a median household EBI at 76%
<br /> of national levels.On a GAAP basis for fiscal 2009,the district posted a deficit of$2.9 million,reducing the
<br /> unreserved fund balance to negative$985,045 or a negative 3.1%of expenditures.As measured on a cash basis,the
<br /> unreserved cash balance totaled$1.7 million or 5.0%of expenditures in fiscal 2009,which we consider good.The
<br /> district's recent five-year forecast(2010-2014)shows use of fund balance in all five years with positive cash balance
<br /> until fiscal 2011.Voters most recently approved a renewal levy in November 2007 and the district anticipates
<br /> approaching voters again in November 2010.We view overall debt burden as moderate at$2,071 per capita and
<br /> 5.2%of market value.We understand that there are no additional debt plans at this time.The district's FMA score is
<br /> "good".
<br /> Parma(A+)
<br /> Parma serves an estimated population of 80,000 in Cuyahoga County,eight miles south of downtown Cleveland. A+ Sean Hughes
<br /> Income levels in the city are,in our opinion,good,with median household EBI at 96%of national levels.Market value
<br /> decreased by an annual average of 1.9%since 2005 to$4.54 billion in fiscal 2009,or$65,459 per capita,which we
<br /> consider strong.Following an expected$1.2 million draw of general fund balance in fiscal 2008,the city projects to
<br /> post a$1.3 million surplus in the general fund despite softening income tax revenues in fiscal 2009.Management
<br /> expects the city to close fiscal 2009 with$3.8 million of fund balance,equating to a strong 9.12%of operating
<br /> www.standardandpoors.com/ratingsdirect 9
<br />
|