LOS ANGELES — Moody's upgraded the Mill Valley School District, Calif. to Aa1 from Aa2, affecting roughly $14 million of outstanding general obligation debt.
The bonds are secured by the district's unlimited property tax pledge. The upgrade, Moody's said, reflects the district's robust and growing tax base in the economically vibrant San Francisco Bay Area; extremely strong local socioeconomic profile; and strong financial position combined with a demonstrated community willingness to provide supplemental financial support to local schools. The rating also reflects the district's modest debt and pension liability and management's pro-active approach to addressing current and future OPEB costs.
The rating also reflects the strength of the voter-approved, unlimited property tax pledge securing the bonds, and the well-established levy and collection history for the debt service payment. The county, rather than the district, levies, collects, and disburses the district's property taxes, including the portion constitutionally restricted for debt service on GO bonds, which it transfers directly to the paying agent.
Mill Valley School District, which consists of six schools, is approximately 15 miles north of San Francisco in Marin County.
The bonds are secured by the levy of ad valorem taxes, without limit as to rate or amount, upon all taxable property in the district. The levy is collected, held and transferred directly to the paying agent by the county on behalf of the district.