PUBLIC FINANCE - BoardDocs

Primary Credit Analysts:
Moreen Skyers-Gibbs
New York
212-438-1734
moreen_skyers-gibbs@
standardandpoors.com
Secondary Credit Analysts:
Karl Jacob
New York
(1) 212-438-2111
karl_jacob@
standardandpoors.com
RatingsDirect
Publication Date
April 16, 2008
PUBLIC FINANCE
Warren County School District, Pennsylvania
Credit Profile
US$10. mil GO bnds ser 2008 dtd 04/15/2008 due 09/01/2017
Long Term Rating A/Stable New
Warren Cnty Sch Dist GO
Unenhanced Rating A(SPUR)/Stable Affirmed
Many issues are enhanced by bond insurance.
Rationale
The ‘A’ rating on Warren County School District, Pa.’s series 2008 general obligation (GO)
bonds reflects:
A rural, residential community with decreasing population and enrollment trends;
Adequate wealth levels;
Historically strong financial performance; and
Very low overall debt burden with no additional debt needs.
The district is located in Warren County in the northwestern section of the state,
approximately 60 miles east of Erie and 130 miles north of Pittsburgh. The district’s 2007
estimated population was 38,418, representing a slight 2% decrease since 2006 due to outmigration
and the aging of its population base. The district operates 13 elementary schools
and six secondary schools providing educational services to approximately 5,311 students in
2007-2008. Enrollment trends decreased 3% between 2004 and 2008 and are projected to
further decline over the next five years.
The local economy is concentrated in manufacturing and retail. The major employer within
the district is Blair Corp. (online and mail order sales of men’s and women’s wear), which
employs more than 250. Other major employers include the school district, Warren County,
and OSRAM/Sylvania Products Co., among several other manufacturing companies. The
district’s income levels, as measured on a median household effective buying income basis, are

Warren County School District, Pennsylvania
adequate at 87% and 83% of state and national averages, respectively. Land use inside the district is
designated 63% for residential purposes, 15% commercial, and 13% agricultural. In 2007, market
value increased substantially, by 22%, bringing the total to $1.2 billion, or a low $33,129 per capita.
Leading taxpayers account for a very diverse 8% of total assessed valuation.
The district’s financial position has been strong over time. Management has maintained an
unreserved designated and undesignated fund balance of 10% over the past three years. It has achieved
five surpluses over a six-year period. Fiscal 2007 ended with huge surplus of $1.3 million, bringing the
unreserved designated and undesignated fund balance to $7 million, a strong 12% of expenditures.
State aid and local sources accounted for 55% and 40%, respectively, of fiscal 2007 operating revenue.
Standard & Poor’s Ratings Services considers Warren County School District’s financial
management practices “standard” under our Financial Management Assessment (FMA), indicating
that practices exist in most areas, although not all may be formalized or regularly monitored by
governance officials. The district’s budget monitoring is sound, with monthly budget reports presented
to the school board. Investment holdings are monitored monthly and reported to the board when
matured. Management aims at maintaining an unreserved fund balance at $5 million, which it has
achieved over the past three consecutive years. The district makes a five-year facilities plan that it
updates annually. There are no formal debt management policies.
The district’s overall debt burden is very low at $746 on a per capita basis and low at 2% of market
value. The district expects debt service as a percent of expenditures to be a low 5% in the fiscal 2008
budget. Debt amortization is above average, with approximately 80% being retired in 10 years and
95% in 20 years. The purpose of this bond issuance is to refund the district’s outstanding GO bonds
series 2001 and 2002. The district has no additional debt needs.
Outlook
The stable outlook reflects Standard & Poor’s expectation that the district will maintain good financial
performance and a stable fund balance. It also reflects that the district has no need for additional debt.
Standard & Poor’s | ANALYSIS 2

Warren County School District, Pennsylvania
Published by Standard & Poor's, a Division of The McGraw-Hill Companies, Inc. Executive offices: 1221 Avenue of the Americas, New York, NY 10020.
Editorial offices: 55 Water Street, New York, NY 10041. Subscriber services: (1) 212-438-7280. Copyright 2008 by The McGraw-Hill Companies, Inc.
Reproduction in whole or in part prohibited except by permission. All rights reserved. Information has been obtained by Standard & Poor's from sources
believed to be reliable. However, because of the possibility of human or mechanical error by our sources, Standard & Poor's or others, Standard & Poor's
does not guarantee the accuracy, adequacy, or completeness of any information and is not responsible for any errors or omissions or the result obtained
from the use of such information. Ratings are statements of opinion, not statements of fact or recommendations to buy, hold, or sell any securities.
Standard & Poor's uses billing and contact data collected from subscribers for billing and order fulfillment purposes, and occasionally to inform subscribers
about products or services from Standard & Poor's, our parent, The McGraw-Hill Companies, and reputable third parties that may be of interest to them. All
subscriber billing and contact data collected is stored in a secure database in the U.S. and access is limited to authorized persons. If you would prefer not to
have your information used as outlined in this notice, if you wish to review your information for accuracy, or for more information on our privacy practices,
please call us at (1) 800-852-1641 or write us at: privacy@standardandpoors.com. For more information about The McGraw-Hill Companies Privacy Policy
please visit www.mcgraw-hill.com/privacy.html.
Analytic services provided by Standard & Poor's Ratings Services ("Ratings Services") are the result of separate activities designed to
preserve the independence and objectivity of ratings opinions. Credit ratings issued by Ratings Services are solely statements of opinion
and not statements of fact or recommendations to purchase, hold, or sell any securities or make any other investment decisions.
Accordingly, any user of credit ratings issued by Ratings Services should not rely on any such ratings or other opinion issued by Ratings
Services in making any investment decision. Ratings are based on information received by Ratings Services. Other divisions of Standard
& Poor's may have information that is not available to Ratings Services. Standard & Poor's has established policies and procedures to
maintain the confidentiality of non-public information received during the ratings process.
Ratings Services receives compensation for its ratings. Such compensation is normally paid either by the issuers of such securities or by
the underwriters participating in the distribution thereof. The fees generally vary from US$2,000 to over US$1,500,000. While Standard
& Poor's reserves the right to disseminate the rating, it receives no payment for doing so, except for subscriptions to its publications.
Permissions: To reprint, translate, or quote Standard & Poor's publications, contact: Client Services, 55 Water Street, New York, NY
10041; (1) 212-438-7280; or by e-mail to: research_request@standardandpoors.com.
www.standardandpoors.com 3