Standard & Poor’s upgraded the San Ramon Valley Unified School District to AA from AA-minus ahead of its annual tax and revenue anticipation note sale.
The suburban San Francisco Bay Area school district’s $30 million of Trans are rated SP-1-plus.
“The raised rating is based on our view of the district’s very strong financial position, as evidenced by its strong unreserved general fund balance and revenue flexibility in the form of a parcel tax,” said credit analyst Li Yang. “Further supporting the rating is the district’s strong average daily attendance levels.”
Strong support from its local community has helped the district better survive state budget cuts. Local voters have agreed to pay a parcel tax beginning in fiscal 2010 to give the schools an extra $7 million a year, and donations from the district’s residents total as much as $15 million a year.
The rating also reflects “strong levels of reserves despite cuts in state funding in 2010, which reflects the district’s good financial management,” Yang said in a report.
The district had general fund reserves of 8.8% of expenditures in fiscal 2008, the report said. It also maintained a non-general fund reserve that totaled about 1.8% of expenditures.
The district is located in southern Contra Costa County and includes the city of San Ramon and the town of Danville.
The area is wealthy and has jobless rates well below the state and national average with median household effective buying income at 263% of the national level and assessed value per capita of $277,000.
