S&P Rates Woodlake Union High Sch Dist, CA Bnds 'BBB'

Business Wire, August 3, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/3/98-- Standard & Poor's today assigned its triple-'B' rating to Woodlake Union High School District, Calif.'s G.O. bonds (Election of 1998) series A dated Aug. 1, 1998 due Aug. 1, 2023. The bonds are scheduled to sell Aug. 4, 1998. The rating reflects the district's: -0-

--   Rural and agricultural composition with modest wealth indicators;
--   Increasing enrollment and positive assessed valuation trends;
--   Moderate debt levels; and
--   Adequate fund balances.

Woodlake Union High School District (estimated population 11,000) serves three feeder elementary school districts and is centered in and around Woodlake in Tulare County in California's central valley. Although some residents commute to nearby Visalia, the economy and employment base of the district is concentrated in agriculture. The largest employers in the area include numerous produce packaging plants, nurseries, and other businesses linked to citrus farming. District wealth indicators are low. Per capita effective buying income is 64% of the county and 44% of the state average. Median household effective buying income is 76% of the county and 56% of the state average. Tulare County has a very high unemployment of 15.7%. However, assessed valuation has increased to $481 million in 1998 from $416 million in 1994, an average of 5.2% per year. Per capita property value is above average at $43,746. Student enrollment is 738 and has grown by 10% since 1994. Student-to-teacher ratios are low for California at 27:1.

In June 1998, voters authorized the issuance of $3.6 million in G.O. debt with a voter approval rate of more than 70%. Bond proceeds will finance general modernizations as well as the construction of an event center and six new classrooms. The district's overall net debt, following issuance, is moderate considering district wealth indicators, at $980 per capita, or 2.2% of true value. The district projects that the necessary tax rate to service the current bond issue will be between $44-$59 per $100,000 in assessed property value.

The district has consistently operated at break-even levels through 1998, and projects similar results for 1999. The district anticipates ending 1998 with an unreserved fund balance of $215,000, or 4.7% of expenditures. The unreserved fund balance should be $239,000, or 5.3% of expenditures in fiscal 1999. The state requires the school district to maintain at least 4% of its fund balance as unreserved.

OUTLOOK: STABLE The outlook reflects the district's growing student enrollment, increasing assessed values, and generally prudent financial management policies, which are all factors that provide credit stability, Standard & Poor's said. ---CreditWire

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               Tammy Eng, 415/765-5019
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