NEW YORK - Standard & Poor's Ratings Services said it raised its rating and underlying rating (SPUR) to AA-minus from A-plus on Corona-Norco Unified School District (USD), Calif.'s outstanding general obligation (GO) debt.
At the same time, Standard & Poor's assigned its A-plus rating to the district's series 2010A refunding certificates of participation (COPs). The outlook on all ratings is stable.
"The raised ratings are based on our view of the district's good financial practices, which have led to stable reserves despite reduced state funding," said Standard & Poor's credit analyst Jen Hansen.
The district's financial position is considered good. The district's fiscal 2009 audit shows that the district more than tripled its unreserved fund balance to $34.4 million, which management attributes to unspent federal stimulus money, the state allowing the district to move categorical funding to the general fund, and the implementation of more than $19 million in expenditure cuts.
For fiscal 2010, the district reports that it spent down its unrestricted general fund balance to $19.3 million, or a good 5.1% of expenditures, as it utilized its federal stimulus money. The district reports that it has negotiated with its employees a 5% across-the-board salary reduction -- resulting in a total of $16 million in annual savings -- that will be in effect until the state reinstates its previous spending levels. The district projects balanced operations for fiscal 2011.
Corona-Norco USD encompasses 148 square miles in northwestern Riverside County and serves a growing population of approximately 235,000. Average daily attendance totaled 50,470 in fiscal 2010.
