Increasing reserves, manageable debt, a strong local economy and affordable retiree costs are among the reasons Fitch Ratings awarded the Dallas Independent School District a bond rating of AA+ for the second consecutive year.
Fitch also again rated the Dallas ISD’s overall rating outlook as “stable.” According to Fitch, the ratings reflect the district’s commitment to effective fiscal management. The rating was made prior to the sale of $75 million in maintenance tax notes during the week of July 6.
“The high ‘AA+’ rating reflects the district’s strong financial position and ample flexibility characterized by very sound fund balance and liquidity levels,” according to a statement from Fitch. “Management’s conservative budgeting and tighter spending controls have contributed to consistent, sizeable operating surpluses over the past five fiscal years. Positive budget performance is again projected for fiscal 2015.”
Overall, Fitch notes Dallas ISD’s fiscal strength continues to improve. The fiscal ratings agency noted steady budget surplus in the last five years, including $62 million in 2014-2015, support a stable fiscal path. This was achieved, according to Fitch, through management of vacant positions and tighter departmental spending controls despite a growth in district spending.