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Fitch Rates Falls Church, VA's GOs 'AAA'; Outlook Stable Feb 10, 2012 02:27PM

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has assigned an 'AAA' rating to the following general obligation (GO) bonds of the City of Falls Church, Virginia's (the city):

--$15.6 million GO refunding bonds, series 2012.

The bonds are scheduled for competitive sale on Feb. 21st. Proceeds will refund certain outstanding GO bonds of the city for debt service savings without extending final maturity.

In addition, Fitch affirms the 'AAA' rating on the following bonds:

--$21.7 million of outstanding GO school construction and refunding bonds, series 2004;

--$10 million of outstanding GO public improvement and refunding bonds, series 2011.

The Rating Outlook is Stable.

SECURITY

The bonds are general obligations of the city for the payment of which the city's full faith and credit and unlimited taxing power are irrevocably pledged.

KEY RATING DRIVERS

IMPROVED FISCAL HEALTH: Reserves dropped to a very low level in fiscal years 2009 and 2010 but have since been restored to a position that provides a more satisfactory financial cushion. Management's commitment to rebuilding the fund balance is evidenced through various policy formations and has been executed through a combination of revenue and expenditure actions.

STRONG ECONOMIC CHARACTERISTICS: Falls Church's proximity to the Washington D.C. area, low unemployment, above average wealth levels, and highly educated labor force underscore its very healthy economic profile.

FAVORABLE DEBT PROFILE: Debt levels are presently low as is the cost of servicing the city's outstanding obligations relative to the general fund budget. The city's capital program, which is largely debt financed, is expected to increase debt ratios over time but not in a manner harmful to credit quality.

CREDIT PROFILE

WEALTHY ECONOMY WITHIN THE D.C. METRO AREA

Falls Church is located within the Capital Beltway, approximately 10 miles west of the District of Columbia. The city occupies a small geographic area of 2.2 square miles and is home to more than 12,300 residents. The city is largely developed and its tax base is more than 70% residential in nature. Residents enjoy access to an extensive transportation network which includes two stations of the Metrorail System in addition to the vast employment market of the Washington D.C. metropolitan area. Historical unemployment rates are well below the national average. The city's September unemployment rate of 8.2% is up from 6% a year earlier as labor force growth has outstripped the 1.6% gain in employment during the period.

The tax base has exhibited modest declines in recent periods, largely due to housing price pressures. However, taxable values were essentially flat in fiscal 2011 and the city reports several mixed-use projects underway that should contribute to stabilized valuation over the near term. The Falls Church median home value as reported by Zillow.com is up an impressive 8.7% year-over-year to $396,900 in September 2011. As suggested by the high price of housing, the city's tax base is quite affluent. The 2011 market value per capita of $261,000 is very strong and the city's personal and household income metrics vary from 65% to 120% above state and national medians. Residents' earning power is supported by their extremely high educational attainment; nearly 40% of the city's population 25 years or older hold a graduate or professional degree compared to 10.1% nationally.

EFFECTIVE RESPONSE TO FINANCIAL DOWNTURN

The city continues to make progress in its effort to improve its unreserved fund balance which had declined sharply from $15.6 million or 25.5% of spending in fiscal 2006 to $2.7 million or 4% in fiscal 2010. The diminishment of fund balance was attributed in part to planned capital spending and the underperformance of real estate, sales and use, and other economically sensitive tax revenue streams. Further contributing to the spend down of reserves was an unbudgeted $2.35 million reimbursement to the city's water fund following a court ruling that enjoined the city from its practice of transferring money to the general fund for purposes unrelated to the water system (according to the city, certain customers of the water system have filed suit seeking reimbursement of a portion of previously paid water bills. The general fund's maximum related exposure is an estimated $387,000 or 0.6% of the fiscal 2012 budget).

To restore reserve levels, the city has imposed a $0.20 per $100 of assessed value (AV) or 18.7% increase in the real property tax rate since Jan. 1, 2010, a difficult policy decision given the current broad economic and political environment. Property tax revenues, which fund approximately two-thirds of the general fund budget, have risen by an estimated $5 million annually due to the tax rate hike. At $1.27 per $100 of AV the city's current tax rate is somewhat high relative to other northern Virginia municipalities. Collections remain solid at more than 98% on a current basis in fiscal 2011.

The city dedicated a portion of the tax rate increase to restore reserves to the newly increased policy minimum and target of 12% and 17% of spending respectively. Audited results for fiscal 2011 show a net operating surplus (after transfers) of $4.1 million (or an impressive 6.7% of total spending of $61.1 million). The unrestricted fund balance (the sum of the unassigned, assigned, and committed fund balance under GASB 54) totaled $7.4 million at year-end or 12.1% of spending.

The fiscal 2012 budget restores an additional $2.3 million to the general fund balance. According to the city, year-to-date results show revenues are over-performing budget expectations by 7.2%, as the final tax roll came in higher than projected and sales and meals tax receipts continue to excel. If these gains hold, the fiscal 2012 budgeted surplus would be larger than expected and would improve already satisfactory financial cushion at the current rating level taking into account the city's other credit characteristics.

The city has relied on a mix of expenditure reductions to supplement the tax increase to improve its financial position. Employee compensation has declined for several consecutive years, and the fiscal 2012 budget funds 27 fewer positions, for a 13% reduction in workforce, since fiscal 2009. Education funding, which typically consumes 40% to 45% of the general fund budget, was reduced 5% in fiscal 2011 and held flat in fiscal 2012. City council budget guidance establishes a 0.5% cap on annual growth excluding pension and post retirement benefits.

CONTINUED LOW DEBT

The city's debt service budget is very manageable. Annual debt carrying costs will peak at $4.4 million in fiscal 2013 or 6.8% of the current fiscal year general fund budget. City policy limits debt service to no more than 12% of spending. Outstanding debt is repaid at an above-average pace and debt service declines by more than $1 million by fiscal 2015 creating capacity to finance future capital needs.

Priority given to restoring the city's fund balance has reduced pay-as-you-go capital spending to a modest $200,000 in fiscal 2012 for critical public safety and health projects. The city adopted a new policy regarding-pay-as-you-go capital funding that establishes a capital reserve fund equal to the lesser of 5% of fixed assets or $3.75 million. Management plans to reach this policy goal through annual appropriations for capital of $500,000 from fiscal years 2013 through 2021? and $375,000 thereafter. The city believes it has the capacity to realize this plan given the $2.3 million structural surplus built into the current year budget.

The 2013-2017 capital improvement plan (CIP) includes $48.3 million in general government and school projects, of which $27 million is expected to be debt financed (including the proposed issuance). Fitch does not believe that the city's additional issuance plans will materially impact credit quality. The city does not have exposure to variable rate debt, derivatives, or short-term notes. The city's pension plans are well funded and annual contributions to both pension and other post-employment benefits, each equal to or greater than the respective actuarially required contribution, consume an affordable share of the budget.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

In addition to the sources of information identified in the Tax Supported Rating Criteria, this action was informed by information from Creditscope, University Financial Associates, S&P/Case-Shiller Home Price Index, IHS Global Insight, and Zillow.com.

Applicable Criteria and Related Research:

--'Tax-Supported Rating Criteria' (Aug. 15, 2011);

--'U.S. Local Government Tax-Supported Rating Criteria' (Aug. 15, 2011).

Applicable Criteria and Related Research:

Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648898

U.S. Local Government Tax-Supported Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=648842

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch RatingsPrimary AnalystGinny Glenn, +1-212-908-9130AnalystFitch, Inc.One State Street PlazaNew York, NY 10004orSecondary AnalystMichael Rinaldi, +1-212-908-0833Senior DirectororCommittee ChairpersonJose Acosta, +1-512-215-3726Senior DirectororMedia RelationsSandro Scenga, New York, +1-212-908-0278sandro.scenga@fitchratings.com

Source: Fitch Ratings

/ KILL - ExcelDebt Relief Feb 10, 2012 02:25PM

RICHMOND, CA -- (MARKET WIRE) -- 02/10/12 -- Editors and other readers are advised to disregard the news release with the headline, "Fernando Fiore Believes You Can Score a Goal With ExcelDebt Relief," issued February 9, 2012 by ExcelDebt Relief. The release was issued in error.

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Source: ExcelDebt Relief

FIT Announces $2 Million Gift From Calvin Klein and Calvin Klein, Inc. to Support Annual Fashion Show Feb 10, 2012 02:25PM

San Diego District Court Judge Rules in Favor of Female Athletes in Title IX Class Action Case Against Sweetwater Union High School District Feb 10, 2012 02:25PM

Girls Face Worse Facilities, Fewer Opportunities, and Unfair Distribution of Resources at Castle Park High School.

LOS ANGELES--(BUSINESS WIRE)-- In a potentially precedent-setting decision, Judge James M. Lorenz of the U.S. District Court for the Southern District of California on Thursday ruled in favor of a group of female athletes in a Title IX class action lawsuit against the Sweetwater Union High School District. The judge determined the school district unfairly favored boys’ sports over girls’ sports at Castle Park High School (CPHS) by giving the boys better athletic facilities, resources and opportunities. The parties are to submit the proposed compliance plan within 45 days of the filing of this order.

The case, Ollier v. Sweetwater Union High School, et al., was filed in 2007 by the Legal Aid Society-Employment Law Center, California Women’s Law Center, and Manatt, Phelps & Phillips, LLP. The student plaintiffs sued for injunctive relief under Title IX of the 1972 Education Amendments, which bars sex discrimination in education, including athletic programs.

The case detailed the consistently superior quality of playing and practice facilities for the boys’ football and baseball teams, compared to those provided for the girls’ teams. The boys had dedicated locker rooms for just the football team and access to the best athletic amenities. Female athletes did not have comparable facilities. The fields where the girls were required to practice and play were overused, rundown and sometimes unsafe.

In his order, Judge Lorenz noted: “The balance of hardships weighs firmly in plaintiffs' favor. The inequalities demonstrated at trial should have been rectified years ago by the district. ...plaintiffs are entitled to injunctive relief. Defendants are required to comply with Title IX in all aspects of its athletic programs and activities..."

“This victory not only validates the arguments of this group of students, but equalizes the playing field for future girl athletes who deserve an equal high school experience to their male classmates,” said Manatt Litigation partner Erin C. Witkow. “It’s about comparable facilities for boys and girls today—and tomorrow. The schools have to comply and continue to comply, and provide an equal opportunity for student athletes—no matter their gender.”

When parents and students complained about these Title IX violations at CPHS, the administration retaliated against the girls by firing their highly qualified and beloved coach and refusing to allow qualified parents to assist the new coach, despite the fact that the baseball team was still allowed to have parent coaches.

In April 2009, Judge Lorenz issued summary judgment on one of the claims, ruling that CPHS allowed “significant gender-based disparity” in sports at the expense of female athletes. Thursday’s ruling was made in favor of two remaining claims brought by the class: that the District did not provide both sexes equal treatment and benefits; and that the District retaliated in response to complaints of sex discrimination.

“I’m very happy with the outcome of this lawsuit. I hope this will mean more athletic opportunities for all students at Castle Park High School, but especially for girls,” said Veronica Ollier, plaintiff and former CPHS student and softball team member. “I hope this will lead to more college-bound female athletes from Castle Park High School. The outcome was absolutely worth the wait.”

“With this victory, future generations of girls at Castle Park High School will get the same opportunities and treatment as boys at the school," said Naudia Rangel, plaintiff and former CPHS student and softball team member. “That’s all I wanted from this lawsuit. I just wanted things to be fair. I’m proud that we changed the future for female athletes at Castle Park High School.”

“The Sweetwater Union High School District had numerous opportunities to solve this problem,” said Vicky Barker, Legal Director of the California Women’s Law Center. “But instead of addressing the stark discrepancy between the girls and boys athletic programs, they chose to go to court and continue these clearly discriminatory practices. We thank these courageous young women for coming forward to fight against this unfair treatment at their school and we thank Judge Lorenz for holding the School District accountable for its actions.”

“Title IX is almost 40 years old, yet we still see this type of blatant discrimination against young girls all across the country,” said Elizabeth Kristen of The Legal Aid Society-Employment Law Center. “And this is not just about athletics or physical fitness. High school girls who participate in team sports are less likely to drop out of school, less likely to smoke or drink, or become pregnant. And they are more likely to go on to college. The skills that young women gain from sports participation, including teamwork, leadership, and discipline, are crucial to their later success in higher education and employment.”

Although Title IX cases filed on the college level are highly publicized, discrimination is just as likely to occur at the K-12 level. Discrimination in elementary and high schools often goes unchecked because younger athletes and their parents may not be aware that anti-discrimination laws apply to public educational institutions as well as to most private educational institutions if they receive federal funding. Each school system is required to implement and enforce Title IX.

About the Legal Aid Society–Employment Law Center

The Legal Aid Society-Employment Law Center, founded in 1916, is the oldest legal aid organization in the West. It is committed to protecting the rights and economic self-sufficiency of low-income and disadvantaged workers and their families throughout the Bay Area, California, and nationwide. The LAS-ELC provides a continuum of assistance, including community legal services, educational materials, technical assistance to other groups, and direct legal representation. It is nationally recognized for its legal advocacy programs that address racial equality; gender equity; immigration and national origin, and disability rights.

About the California Women’s Law Center

Since its founding in 1989, the California Women’s Law Center (CWLC) has worked to eliminate the barriers that keep women and girls in poverty. CWLC advances systemic reforms through gender discrimination, health, violence against women, and reproductive justice initiatives, ensuring that life opportunities for women and girls are free from unjust social, economic, and political constraints. CWLC is a leader in Title IX education and enforcement in California at the high school level.

About Manatt, Phelps & Phillips, LLP

Manatt, Phelps & Phillips, LLP, is one of the nation's leading law firms with offices located in California (Los Angeles, Orange County, Palo Alto, San Francisco and Sacramento), New York (New York City and Albany) and Washington, D.C. The firm represents a sophisticated client base – including Fortune 500, middle-market and emerging companies – across a range of practice areas and industry sectors. Manatt professionals and staff are actively involved in the firm’s pro bono representations. The firm annually devotes at least 3% of billable time and resources to hundreds of not-for-profit organizations and individuals unable to pay significant legal fees. For more information, visit www.manatt.com.

California Women’s Law CenterVicky Barker, (323) 951-9276vicky.barker@cwlc.orgorThe Legal Aid Society-Employment Law CenterElizabeth Kristen, (510) 501-4692ekristen@las-elc.orgorManatt, Phelps & Phillips, LLPLawrence Martinez, (310) 231-5443lmartinez@manatt.com

Source: Manatt, Phelps & Phillips, LLP