In the course of routine surveillance, Fitch Ratings affirms its rating of 'AA' on Gahanna-Jefferson Public School District (the district), Ohio's outstanding $7.6 million various purpose (general obligation unlimited tax) bonds, series 1999. The Rating Outlook is Stable.
The bonds are voted general obligations of the district and are secured by its full faith and credit. Proceeds of the bonds were used to refinance portions of outstanding debt for debt service savings and fund improvements to buildings and facilities in the district.
The rating reflects the district's strong fiscal management evidenced by sizable general fund balances, low debt levels, and the relatively stable economy of the area. The district includes the City of Gahanna and portions of Jefferson and Mifflin Townships. Gahanna, an affluent suburban residential community of approximately 33,000, lies about nine miles northeast of downtown Columbus. The district's facilities include a high school, three middle schools and seven elementary schools with a total enrollment of 6,832. Projected student enrollment is expected to slowly decline, as the district is essentially fully developed. Financial flexibility is enhanced by the maintenance of sizable reserves, voter support for increased operating millages, and proactive fiscal planning. The district is in the process of expanding its high school campus and is expected to fund a multipurpose project internally and through lease payments from private development. No additional borrowing is planned.
Note: Fitch issued an exposure draft on July 31, 2008 proposing a recalibration of tax-supported and water/sewer revenue bond ratings which, if adopted, may result in an upward revision of this rating (see Fitch research 'Exposure Draft: Reassessment of the Municipal Ratings Framework'.) At this time, Fitch is deferring its final determination on municipal recalibration. Fitch will continue to monitor market and credit conditions, and plans to revisit the recalibration in the first quarter of 2009.
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