St. Charles Schools Get AA

Standard & Poor’s raised the ratings of the St. Charles Parish School Board and St. Charles Parish School District No. 1 as a result of continuing growth in the property tax base, strong sales tax collections, and healthy general fund balances.

The agency raised $35.4 million of outstanding general obligation bonds to AA from A, and $9.3 million of outstanding sales tax-backed debt to AA from A-plus.

Credit analyst Jim Tchou said the improved ratings reflect the overall economic vitality of the southern Louisiana parish despite a reliance on large petrochemical complexes along the Mississippi River.

“We believe the district’s limited additional capital needs, continued sound financial performance, and steady sales tax collections should mitigate our concerns regarding the high concentration level in the district’s property tax base,” Tchou said.

The district’s unreserved general fund balance grew to $50.8 million in fiscal 2008 from $18 million at the end of fiscal 2004, Tchou said.

Pledged sales tax revenues grew by 35.6% between fiscal 2005 and 2006 to $14.1 million due to plant expansions and increased sales after Hurricane Katrina. Pledged revenues for fiscal 2009 are estimated at $17.1 million.

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