S&P Rates Whittier City School Dist, CA COPs 'BBB+'

Business Wire, June 30, 1998

NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/30/98--Standard & Poor's today assigned its triple-'B'-plus rating to Whittier City School District, Calif.'s G.O. certificates of participation (1998 School Facilities Project) dated July 1, 1998 due Sept. 1, 2029. The certificates are scheduled to sell July 1, 1998.

At the same time, Standard & Poor's today affirmed its triple-'B'-plus rating on the district's G.O. certificates of participation (1997 School Facilities Project). -0-

     The rating reflects:

     --   The district's covenant to budget and appropriate least
          payments,

     --   The district's good overall creditworthiness, and

     --   The essentiality of the leased asset -- Andrews Elementary
          School.

     Proceeds will be used for the modernization of district
facilities. The district's general creditworthiness is based on:

     --   Access to the greater Los Angeles economic base;

     --   Good financial management, and

   --   A manageable debt burden.

-0-

The district (estimated population 86,500) serves the city of Whittier and is approximately 20 miles southeast of Los Angeles. The district provides K-8 education for 6,725 students at 11 elementary and two middle schools. Enrollment has increased an average of 2.5% annually during the last four years. The economic base of the district is small, but stable with leading employers including two hospitals and a community college. Residents have access to the greater Los Angeles economic base. Assessed valuation has been relatively flat in recent years but growth appears to be returning with assessed value increasing 1.8% in 1998 to $2.6 billion or $30,962 per capita.

Financially, the district has maintained good operations. The district ended fiscal 1996 with an operating surplus of $428,000 and an unreserved general fund balance of $2.3 million or 8.8% of expenditures. At the close of fiscal 1997, the district had a large operating surplus of $813,000 increasing the unreserved general fund balance to $3.3 million, or 11.3% of expenditures. For fiscal 1998, the district projects a reduction in the fund balance to about $1.0 million, or 3.1% of expenditures, due to one-time expenditures.

Notably, a special tax on real property was authorized by 67% of voters in 1996 within the boundaries of Whittier Consolidated Facilities District. The board of Whittier Consolidated Facilities District has set the special tax rate at $22.50 per parcel, which can increase 2% annually. The tax covers the debt service payments for the district's debt service payment for both the newly issued certificates and the 1997 issue. Overall the district's debt burden is relatively low at $603 per capita or 0.3% of true value.

OUTLOOK: STABLE The outlook is based on access to the greater Los Angeles economic base, good financial management, and additional revenues to support lease payments from a special tax, Standard & Poor's said.--CreditWire

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               Daniel Stone, 415/765-5016
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