April 24, 2012

Summary:

Jordan Elbridge Central School District, New York; School State Program
Primary Credit Analyst: Richard J Marino, New York (1) 212-438-2058; richard_marino@standardandpoors.com Secondary Contact: Moreen Skyers-Gibbs, New York (1) 212-438-1734; moreen_skyers-gibbs@standardandpoors.com

Table Of Contents
Rationale Outlook Related Criteria And Research

www.standardandpoors.com/ratingsdirect

1
960367 | 300421099

Summary:

Jordan Elbridge Central School District, New York; School State Program
Credit Profile
US$18.145 mil sch dist (serial) bnds 2012 ser B due 07/15/2026 Long Term Rating School Issuer Credit Rating US$1.007 mil sch dist (serial) bnds ser A 2012 due 06/15/2025 Long Term Rating School Issuer Credit Rating Jordan Elbridge Cent Sch Dist School Issuer Credit Rating Unenhanced Rating
Many issues are enhanced by bond insurance.

A+/Stable A+/Stable

New New

A+/Stable A+/Stable

New New

A+/Stable A+(SPUR)/Stable

Rating Assigned Revised

Rationale
Standard & Poor's Ratings Services has assigned its 'A+' long-term rating and school issuer credit rating (ICR) to Jordan Elbridge Central School District, N.Y.'s school district bonds, series 2012A and 2012B. The outlook is stable. The previous 'A' rating on the district's existing GO debt was assigned based on the security provided by the New York State Aid Intercept Program. The ratings have been revised to 'A+' from 'A' because the unenhanced rating is higher than the program rating. The ratings reflect our view of the district's: Somewhat limited, but stable, manufacturing-based local economy with good income levels coupled with its participation in Syracuse metropolitan statistical area; Very diverse tax base that has exhibited consistent growth; Good financial management practices contributing to the maintenance of consistently very strong reserve levels; and Moderate debt burden with minimal capital needs. We believe that the district's future limited revenue-raising flexibility due to the 2% levy limit and some reliance on state aid constrain the rating. The district's full faith and credit pledge secures the bonds. The New York State Aid Intercept program provides additional security to the bonds. Officials plan to use bond proceeds to retire its outstanding bond anticipation notes (BANs). Jordan-Elbridge Central School District, with an estimated population of 8,917 (Claritas Inc.) in 2011, covers about

Standard & Poors | RatingsDirect on the Global Credit Portal | April 24, 2012

2
960367 | 300421099

Summary: Jordan Elbridge Central School District, New York; School State Program

65 square miles spread over several municipalities in Onondaga County and Cayuga County in New York. Enrollment in the district's one elementary school, one middle school, and one high school totals 1,455 in fiscal 2011-2012. This reflects an annual average decrease of 2% since fiscal 2007-2008. Projections show further decrease to about 1,400 by fiscal 2016-2017. The district is primarily a manufacturing-based rural local economy. Welch Allyn Inc., manufacturer of medical diagnostic equipment, is the major employer, with 2,500 employees. Other major employers include Tessy Plastics Corp. (650) and Honeywell Scanning and Mobility (500)--both manufacturing--and the district itself (252). The unemployment rate within Onondaga County has historically been below both the state and the national averages. In 2011, it averaged 7.7%, while the state's was 8.2%. The district is located about 20 miles from Syracuse, which has also contributed to the district's good income level, demonstrated by median household effective buying income at 108% of the national level. However, we view wealth levels as only adequate, as measured by market value per capita of $53,203. With annual townwide revaluations in the various towns, the tax base has seen consistent growth. Assessed valuation (AV) has averaged annual increases of 7% since 2008 to total $473 million in 2012. However, market value, while it has also seen consistent growth, has only increased an average of 3% annually during the same period and totals $474 million in 2012. The 10 leading taxpayers, which consist mainly of utility companies and mobile park homes, represents 11% of market value, which we consider to be very diverse. Management expects the tax base to see additional growth because some companies have been expanding their facilities. The fiscal 2011-2012 (June 30) budget totals $27 million and includes a $1.1 million in fund balance appropriation and a 3.9% levy increase. According to management, based on year-to-date results, the general fund may end with another surplus of about $1 million. Beginning in fiscal 2013, the district will be subject to a 2% levy limit. In the past four years, the district's levy increases have averaged about 3% annually. According to management, the levy limit for fiscal 2013 is 3.2%. Also, given the district's healthy fund balance, management has indicated that future increases will be kept within the limit. State aid and property taxes are the district's major revenue sources and contribute 49% and 45%, respectively, of fiscal 2012 revenues. Over the past five years, the district has achieved consecutive operating surpluses in the general fund. Fiscal 2011's surplus of $624,000 increased the available fund balance to $2.4 million, or a strong 10% of expenditures, from $2 million, or a strong 8% of expenditures. The district has consistently funded and maintained a number of statutory reserves, including accounts for employee benefit accrued liability, liability claims, capital, unemployment, and tax certiorari. When including these reserves, the total fund balance is $5.7 million, or a very strong 22% of expenditures. Standard & Poor's views Jordan Elbridge Central School District's management practices as "good" under its Financial Management Assessment (FMA) methodology. An FMA, of good indicates that practices exist in most areas, although not all may be formalized or regularly monitored by governance officials. Conservative budgeting practices take into account five years of historical trends, and management monitors budget performance and makes monthly reports to the board. Management performs long-term financial forecasts over a three-year period, and capital planning adheres to the state's mandated five-year facilities plan. Reserves are adopted through board resolution, and levels have been consistently maintained; the goal is to maintain the unassigned fund balance at the 4% state maximum. The district has no debt policy in place.

www.standardandpoors.com/ratingsdirect

3
960367 | 300421099

Summary: Jordan Elbridge Central School District, New York; School State Program

In our opinion, after taking into account state building aid, overall net debt is moderate at $2,617 per capita and 4.9% of market value. Debt principal amortization is above-average, with officials planning to retire about 70% by 10 years and 100% by 2032. The debt service carrying charge was moderate, in our opinion, at 13% of fiscal 2011 total governmental expenditures. The district currently has a voter-approved bond authorization of $1.9 million, but, at this time, management has not determined when this will be issued. The district participates in the New York State Teachers' Retirement System and the Employees' Retirement System. The combined fiscal 2011 pension payment was $1.1 million, or 5% of operating expenditures. The district's unfunded other postemployment benefits liability was $42 million (0% funded) as of June 30, 2011, and the annual required contribution was $2.6 million (10%) in fiscal 2011, of which the district contributed $1.5 million, or 6% of expenditures.

Outlook
The stable outlook reflects Standard & Poor's view of the district's stable local economy, which has reflected consistent tax base growth. It also reflects our expectation that the district will maintain its very strong financial position given its track record and good management practices. Given the minimal future capital needs and significant state building aid, we expect that debt levels will remain manageable. As such, we do not expect the rating to change within the two-year parameter of the outlook.

Related Criteria And Research

USPF Criteria: GO Debt, Oct. 12, 2006 USPF Criteria: Key General Obligation Ratio Credit Ranges Analysis Vs. Reality, April 2, 2008 USPF Criteria: Financial Management Assessment, June 27, 2006 USPF Criteria: State Credit Enhancement Programs, Nov. 13, 2008

Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.

Standard & Poors | RatingsDirect on the Global Credit Portal | April 24, 2012

4
960367 | 300421099

Copyright 2012 by Standard & Poor's Financial Services LLC. All rights reserved. No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor's Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT'S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages. Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P's opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process. S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

www.standardandpoors.com/ratingsdirect

5
960367 | 300421099