S&P Rates Hanford Jt Un High Sch Dist,CA GO Bnds A-

Business Wire, July 27, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 7/27/98-- Standard & Poor's today assigned its single-'A'-minus rating to Hanford Joint Union High School District, Calif.'s G.O. bonds (1998 Election) 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: -- Growing enrollment and strong assessed property valuation trends, -- Below-average wealth indicators and relatively high unemployment rates,

-- Low debt, and -- Stable finances. Proceeds will be used to modernize existing facilities and construct new classrooms and facilities, as well as for safety and technological investments.

Founded in 1892, the district (estimated population 54,500) encompasses 249 square miles, including Hanford and surrounding unincorporated portions of Kings County. With the county seat located in Hanford, the district's leading employer is the Kings County government with 1,041 employees. Hanford is a service center for a large agricultural area and the city's retail district appears to be expanding. Assessed property valuations have grown steadily to $2.2 billion in 1998, with an average growth rate of 6.24% per year. Per capita market values are at $41,137 while home prices average $114,993 on the market. The taxpayer base is slightly concentrated, with the 10 leading taxpayers accounting for 15.5% of the district's total assessed value. Median household effective buying income is only 76.6% of the state and 79.6% of the U.S. averages, similar to other communities in the central valley. In addition, the city and county in which the district is located have high unemployment rates at 13.1% and 15%, respectively. Steady population growth trends in Hanford have led to strong student enrollment totaling 2,989 in 1998, up 19.04% since 1993.

The current $8 million bond issue is the first of three anticipated issuances from the April 1998 election in which $18 million was authorized. The district's per capita overall net debt is low at $478, or 1.2% of true value.

Financial performance has been strong. The district has consistently maintained a fund balance of more than $1 million, or about 9% of expenditures. Beginning in 1998, the district plans to reduce this fund balance somewhat to pay off an outstanding land lease. This is a one-time expenditure leaving the fund balance with $850,000, or 5.3% of expenditures, still exceeding the state required minimum of 3%.

OUTLOOK: STABLE The outlook reflects the district's steady operating performance and the expanding retail base of the area, both of which provide credit stability, Standard & Poor's said. -- CreditWire

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               Tammy Eng, San Francisco (1) 415-765-5019
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