Red Oak ISD Receives "A+" Bond Rating
Fitch affirms Red Oak ISD with an A+ bond rating including the rating outlook is Stable. Financial performance has improved as the district continues to register operating surpluses and boost its reserve margins.
A successful rollback election in 2007 allowed the district to generate added property tax revenues while management has effectively controlled costs. The key rating drivers are the stabilization of the district’s tax base and maintenance of the district’s substantial fund balances.
Financial operations continue to improve as the district has reported four consecutive years of general fund operating surpluses enabling the district to build up general fund balances from 3.7% of expenditure in fiscal 2006 to over 15% in fiscal 2010.
These reserve levels are comfortably above the district’s targeted minimum general fund balance of 12.5%. District officials have indicated their intention to maintain or even increase reserve levels. The district is also budgeting about a $ 1 million general fund surplus for fiscal 2011.