Global Header | Moody's
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
New Issue:

MOODY'S ASSIGNS Aa1 RATING TO TUALATIN HILLS PARK AND RECREATION DISTRICT, OREGON'S UNLIMITED TAX GENERAL OBLIGATION BONDS; $98.9 MILLION OF DEBT AFFECTED

16 Aug 2011

Related Ratings Affirmed

Other Sectors
OR

Moody's Rating

ISSUE

RATING

General Obligation Bonds, Series 2011

Aa1

  Sale Amount

$38,775,000

  Expected Sale Date

09/01/11

  Rating Description

Unlimited Tax General Obligation Bonds

 

Opinion

NEW YORK, Aug 16, 2011 -- Moody's Investors Service has assigned a Aa1 rating to Tualatin Hills Park and Recreation District, Oregon's General Obligation Bonds, Series 2011 in the estimated amount of $38.8 million. At this time, Moody's affirms the Aa1 rating on the district's parity debt outstanding in the amount of $60.1 million as well as the Aa2 rating on full faith and credit obligations outstanding in the amount of $9.4 million. The current offering is secured by the district's full faith, credit, and unlimited property tax pledge. Proceeds will finance the development of park facilities and trails.

SUMMARY RATING RATIONALE

The Aa1 rating primarily reflects the district's large service area in the Portland metro region, adequate financial performance that includes relatively narrow reserve levels, and a favorable debt profile.

STRENGTHS

- Continued assessed valuation growth despite the national housing downturn

- Participation in the large and diverse economy of the Portland metro area

CHALLENGES

- General fund reserves below average compared to peers nationally

- Recent slowdown in the growth of fee revenues

DETAILED CREDIT DISCUSSION

DISTRICT SERVES SUBURBAN COMMUNITIES WEST OF PORTLAND

The district was formed in 1955 and currently operates over 280 sites that include swim centers, recreation facilities, historic attractions, along with athletic and senior centers. The service area spans 50 square miles to the west of the City of Portland (Aaa UTGO rating with negative outlook) and serves the City of Beaverton (Aa1 UTGO rating) as well as unincorporated portions of Washington County (Aaa UTGO rating). Residents benefit from diverse employment opportunities in the Portland metro area. The unemployment rate in Washington County was 8.3% in June 2011, which was below state (9.7%) and national (9.3%) levels. As of the 2000 census, per capita and median family incomes in Washington County were above average and represented 115.7% and 122.9% of national levels, respectively.

The district's tax base grew at an average rate of 4.7% in the last five years to a sizable real market value (RMV) of $26.5 billion as of 2011, which is significantly larger than the median for similarly-rated peers. Aggregate declines of 11.2% in the last two years were attributed primarily to weak property values stemming from the national housing downturn. However, the district's assessed valuation (AV) continues to grow despite recent declines in RMV, which is supported by the state's Measure 50 provisions that allow for a property's AV to grow by up to 3.0% annually as long as AV remains below RMV plus adjustments for new development and improvements. As of 2011, the city's aggregate ratio of AV to RMV is only 70.7%, leaving ample margin for continued AV growth under Measure 50 provisions. For 2012, management estimates that AV will grow by only 2.7% due mostly to a de-annexation of a small portion of the service area by the City of Hillsboro.

DISTRICT MAINTAINS ADEQUATE BUT NARROW GENERAL FUND RESERVES

The district's general fund reserve levels declined overall but averaged 14.3% of revenues in the five years ending fiscal 2010, which was below average compared to similarly-rated peers nationally but above management's policy to maintain reserves of at least 10.0% of general fund expenditures. The district's general fund realized small operating deficits in fiscal years 2009 and 2010 as growth in user fee revenues slowed to below budgeted expectations, and management elected not to defer planned maintenance expenditures to balance its budget. For fiscal 2011, officials reported that general fund reserves grew nominally and amounted to approximately 11.5% of budgeted revenues due mostly to more prudent budgeting than in prior years. For fiscal 2012, management conservatively budgeted for flat general fund revenues and expects only modest growth in expenditures that is attributed to stable healthcare costs, flat costs for materials, and a small COLA for employees. Although it is early in the fiscal year, management reported that fee-related revenues are approximately 5.0% above expectations.

The district's primary source of general fund resources is property tax receipts (68.7% of fiscal 2010 revenues) that are relatively stable given the established service area and the state's Measure 50 provisions. Fees related to programs and services are potentially more volatile and comprise a moderately-sized source of general fund revenues (26.1% of fiscal 2010 revenues). Given its relatively low general fund reserve levels, the district issues tax and revenue anticipation notes in most years to provide liquidity until the majority of property tax revenues are received in late-November or early-December; for fiscal 2012, the district has $6.0 million of notes currently outstanding that mature in December 2011 (equalling 16.5% of budgeted general fund revenues).

Also of note, the district operates a single-employer pension plan. A defined-benefit pension program remains in place for employees hired prior to fiscal year 2011; all subsequent hires will be enrolled into a hybrid program in which employees will fund a portion of their benefits through individual contribution accounts. The funded ratio for the district's pension plan fluctuates with market returns for the plan's investment assets and, in the recent economic downturn, the funded ratio declined to 68.5% as of fiscal 2010. However, officials reported that preliminary estimates for fiscal 2011 indicate improvement in the funded ratio due to investment gains.

FAVORABLE DEBT PROFILE

Moody's expects that the district's debt profile will remain manageable given a low direct debt burden and no additional long-term debt plans. The district's direct debt burden is only 0.4% but payout is below average at 40.8% in ten years. The current offering is the final installment of the district's general obligation bond authorization totaling $100.0 million that was approved by 50.1% of voters in November 2008. Also, peak debt service on the district's full faith and credit obligations is paid by the general fund and represents only 3.9% of general fund revenues for fiscal 2010; peak debt service occurs in fiscal 2012 and annual debt service on the obligations declines significantly thereafter.

WHAT COULD MAKE THE RATING GO UP

- Significant and sustainable strengthening of general fund reserve levels

- Appreciation in socioeconomic measures

WHAT COULD MAKE THE RATING GO DOWN

- Deterioration of the district's general fund reserve levels

- Significant and protracted tax base declines

KEY STATISTICS

Estimated service population: 222,952

2011 full value: $26.5 billion

Average annual growth in full value (2006-2011): 4.7%

2011 full value per capita: $118,743

1999 per capita income, Washington County: 115.7% of U.S. ($24,969)

1999 median family income, Washington County: 122.9% of U.S. ($61,499)

Direct debt burden: 0.4%

Overall debt burden: 2.5%

Payout of principal, all debt (10 years): 40.8%

Total general fund balance, fiscal 2010: 11.5% of general fund revenues ($3.8 million)

Pension funding, fiscal 2010: 68.5% (single-employer benefit plan)

Other postemployment benefits (OPEB) liability, fiscal 2010: 10.6% of covered payroll ($914,000 UAAL)

PRINCIPAL METHODOLOGY AND LAST RATING ACTION

The principal methodology used in this rating was General Obligation Bonds Issued by U.S. Local Governments, published in October 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

The last rating action with respect to Tualatin Hills Park and Recreation District, Oregon was on November 15, 2010 when a rating of Aa2 was assigned to Full Faith and Credit Obligations, Series 2010B and Series 2010C.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Information sources used to prepare the rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, confidential and proprietary Moody's Investors Service's information, confidential and proprietary Moody's Analytics' information.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.

The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Analysts

Patrick Liberatore
Analyst
Public Finance Group
Moody's Investors Service

Bryan A. Quevedo
Backup Analyst
Public Finance Group
Moody's Investors Service

Matthew A. Jones
Senior Credit Officer
Public Finance Group
Moody's Investors Service

Contacts

Journalists: (212) 553-0376
Research Clients: (212) 553-1653


Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA

MOODY'S ASSIGNS Aa1 RATING TO TUALATIN HILLS PARK AND RECREATION DISTRICT, OREGON'S UNLIMITED TAX GENERAL OBLIGATION BONDS; $98.9 MILLION OF DEBT AFFECTED
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Global Footer | Moody's