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Surveillance Results In Rating Actions On 37 Midwest Issuers
<br /> expenses,in our opinion.We understand that management plans to continue recently adopted furlough practices and
<br /> expects at least breakeven results for fiscal 2010.According to the most recent audited figures in fiscal 2007,
<br /> Parma's overall net debt burden was,in our opinion,low at 0.95%of market value and$619 per capita.The city's
<br /> FMA score is"standard".
<br /> Princeton City School District(AA+)
<br /> Princeton City School District is located 15 miles north of downtown Cincinnati and serves the cities of Sharonville AA+ Caroline West
<br /> and Springdale and townships of Evendale,Glendale,Lincoln Heights,and Woodlawn.We view income levels in the
<br /> district as good,with median household EBI at 108%of national levels.Enrollment increased by 1.5%in 2009 to
<br /> 5,478 students,management projects the student population to rise slightly in the near future.The loss of the
<br /> personal tangible component of the district's assessed value(AV)due to changing state statutes has posed a _
<br /> challenge to the district's financial health;since 2000,personal tangible AV has declined from 26%of total AV to
<br /> only 6%in 2009.In addition,the district last passed an operating levy in 1999.However,in our opinion,the district's
<br /> financial position remains very strong despite these factors.On a GAAP basis,although the district posted a deficit of
<br /> $1.4 million in fiscal 2009,the general fund balance amounted to$34.5 million or still a very strong 47.8%of
<br /> expenditures in our opinion.Of this amount,$17.8 million(24.6%of expenditures)is unreserved.On a cash basis,the
<br /> unreserved cash balance totaled$18.6 million or 25.9%of expenditures at fiscal year-end 2009,which we consider
<br /> very strong.The district's five-year forecast(2010-2014)shows declines in fund balance in each year,with the fund
<br /> balance becoming negative by fiscal 2012.We understand that the district intends to go on the ballot for a new
<br /> operating levy and a$120 million bond issuance in 2010.The district's FMA score is"good."
<br /> Sandy Valley Local School District(A+) -
<br /> Sandy Valley Local School District(population:8,886)is located 10 miles southeast of the city of Canton in Stark A- Caroline West
<br /> County and also includes a small portion of Tuscarawus County.Enrollment(based on average daily membership)was
<br /> at 1,438 in 2008 and management expects it to remain stable.Income levels in the district are adequate,in our view,
<br /> with median household and per capita EBI at 80%and 73%of the national levels,respectively.The district ended
<br /> fiscal 2009(GAAP basis)with an unreserved general fund balance of$765,410,or 6.2%of general fund expenditures,
<br /> which we consider good.On a cash basis,the unreserved cash balance is at$2.4 million or,in our opinion,a very
<br /> strong 19.3%of expenditures in fiscal 2009.The district's five-year forecast(2010-2014)indicates the cash balance
<br /> to be negative by fiscal 2013.The district passed a renewal 6.0 mill emergency levy in November 2006 for five years
<br /> and anticipates going for an emergency levy renewal in 2011 or 2012.We view overall net debt low at$1,304 per
<br /> capita and 3.0%of market value.The district's FMA score is"standard".
<br /> Sycamore Community School District(AAA)
<br /> Sycamore Community School District is in Hamilton County,10 miles northeast of downtown Cincinnati.The district AA+ Caroline West
<br /> is home to 30,751 residents and serves an enrollment of about 5,700 students.Income indicators are in our opinion
<br /> very strong,with median household and per capita EBI at 155%and 175%of the national levels,respectively.Market
<br /> value grew by 2.2%annually in the past five years to reach$5.15 billion in 2009,or in our view an extremely strong
<br /> $167,522 per capita.We believe the district's financial position is very strong;five consecutive operating surpluses have strengthened strengthened the general fund balance to$54.2 million in 2009,or in our opinion a very strong 76.6%of
<br /> expenditures on a GAAP basis;of this amount,$31.6 million(44.6%of expenditures)is unreserved.On a cash basis,
<br /> the unreserved cash balance totaled$38.1 million in fiscal 2009,or in our view,a very strong 54.1%of expenditures.
<br /> According to management,the most recent operating levy renewal of 5.5 mills,approved by the voters in May 2009,
<br /> will generate positive cash balances in all five years of the latest five-year forecast(2010-2014).We consider the
<br /> district's overall net debt low at$1,979 per capita and 1.2%of market value.The district's FMA score is"good".
<br /> Contact Information
<br /> Table 2
<br /> Credit analyst Location Phone E-mail
<br /> Kathryn Clayton Chicago (1)312-233-7023 kathryn_clayton@standardandpoors.com
<br /> Sean Hughes Chicago (1)312-233-7021 seas_hughes@standardandpoors.com
<br /> John Sauter Chicago (1)312-233-7027 John_sauter@standardandpoors.com
<br /> Blake Yocom Chicago (1)312-233-7056 blakeyoucom@standardandpoors.com
<br /> Abhishek Soni and Daniel Zuccarello contributed to this report.
<br /> Standard & Poor's I RatingsDirect on the Global Credit Portal I March 15,2010 10
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