Fitch Ratings assigns an 'AA+' rating to Solon City
School District, Ohio's (the district) $4 million general obligation
(unlimited tax) school improvement bonds, series 2005, scheduled for
negotiated sale by NatCity Investments, Inc. on or about Dec. 8, 2005.
The Rating Outlook is Stable. In addition, Fitch affirms the 'AA+' on
the district's approximately $23 million of outstanding general
obligation bonds. Secured by the district's full faith and credit
pledge, the bonds will finance various district capital improvements
and represent the last offering of a $10 million bond authorization
approved by voters in May 2003.
The 'AA+' rating reflects Solon City School District's wealthy economic base, well regarded academic programs, strong management practices resulting in a sound financial position, and rapid debt amortization. Continued growth in the district's tax base and strong community support provide the district with the resources and financial flexibility to maintain its high academic standards.
Located in southeastern Cuyahoga County, 19 miles southeast of Cleveland and 22 miles northeast of Akron, the district serves 5,315 students in grades kindergarten through 12 in the City of Solon and the Village of Glenwillow. The educational programs of the district rank among the top in the state in terms of performance on statewide tests. The district's 2004 population estimate of 22,309 represents a 1.4% annual increase since 1990, and steady enrollment gains averaged 1.1% in the past five years.
The strong local economy has resulted in a 4.0% annual gain in the district's tax base since 1997. Unemployment in Cuyahoga County (general obligation bonds rated 'AAA' by Fitch) stood at 5.9% for September 2005, approximating the metropolitan area's 5.6% and slightly greater than state and national rates of 5.4% and 4.8%, respectively. The City of Solon's per capita income represents 169% and 162% of state and national figures, respectively.
In May 2005, district voters approved a 6.9-mill renewal operating levy for collection beginning in fiscal 2006. This revenue, combined with the expanding local economy and the district's strong financial management, should provide the resources to maintain the district's high quality academic programs for the next several years. As is common in many Ohio school districts, the finances fluctuate as a result of expiring tax levies designed to avert inflationary increases in property tax revenues, as well as needed voter approval to increase tax rates above the statutory 10-mill rate. The approval of every bond issue and tax levy increase since 1993 demonstrates the community's support of the district.
The district ended fiscal 2004 (June 30 year-end) with a total general fund balance of $3.1 million, or 5.8% of expenditures and transfers out. Local taxes provided 86% of the district's resources in fiscal 2004, while state aid represented 14% of the budget.
The district's direct debt levels stand at $1,201 per capita and 0.8% of full market value, while overall debt levels are moderate at $2,474 per capita and 1.6% of full market value. Debt amortization is rapid as 70% of principal is repaid within 10 years, and the district does not anticipate further debt issuance in the near term.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
The 'AA+' rating reflects Solon City School District's wealthy economic base, well regarded academic programs, strong management practices resulting in a sound financial position, and rapid debt amortization. Continued growth in the district's tax base and strong community support provide the district with the resources and financial flexibility to maintain its high academic standards.
Located in southeastern Cuyahoga County, 19 miles southeast of Cleveland and 22 miles northeast of Akron, the district serves 5,315 students in grades kindergarten through 12 in the City of Solon and the Village of Glenwillow. The educational programs of the district rank among the top in the state in terms of performance on statewide tests. The district's 2004 population estimate of 22,309 represents a 1.4% annual increase since 1990, and steady enrollment gains averaged 1.1% in the past five years.
The strong local economy has resulted in a 4.0% annual gain in the district's tax base since 1997. Unemployment in Cuyahoga County (general obligation bonds rated 'AAA' by Fitch) stood at 5.9% for September 2005, approximating the metropolitan area's 5.6% and slightly greater than state and national rates of 5.4% and 4.8%, respectively. The City of Solon's per capita income represents 169% and 162% of state and national figures, respectively.
In May 2005, district voters approved a 6.9-mill renewal operating levy for collection beginning in fiscal 2006. This revenue, combined with the expanding local economy and the district's strong financial management, should provide the resources to maintain the district's high quality academic programs for the next several years. As is common in many Ohio school districts, the finances fluctuate as a result of expiring tax levies designed to avert inflationary increases in property tax revenues, as well as needed voter approval to increase tax rates above the statutory 10-mill rate. The approval of every bond issue and tax levy increase since 1993 demonstrates the community's support of the district.
The district ended fiscal 2004 (June 30 year-end) with a total general fund balance of $3.1 million, or 5.8% of expenditures and transfers out. Local taxes provided 86% of the district's resources in fiscal 2004, while state aid represented 14% of the budget.
The district's direct debt levels stand at $1,201 per capita and 0.8% of full market value, while overall debt levels are moderate at $2,474 per capita and 1.6% of full market value. Debt amortization is rapid as 70% of principal is repaid within 10 years, and the district does not anticipate further debt issuance in the near term.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
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