The ‘AA-‘ reflects the district’s midrange to weak demographic economic trend and level, ‘a’ financial resilience due to its somewhat slim five-year low reserve balance and midrange long-term liability composite.

The ‘a’ financial resilience assessment reflects the district’s limited level of budgetary flexibility typical of California school districts. It incorporates the district’s inability to independently raise revenue and midrange expenditure controls based on the framework for negotiating with labor unions. The midrange long-term liability composite includes the weak LTL burden associated with direct debt and Fitch-adjusted net pension liabilities as a percentage of residents’ personal income, a midrange level of fixed carrying costs as a percentage of governmental expenditures, and moderately higher liabilities in comparison to governmental revenues.

Source: Fitch Affirms Fairfield-Suisun USD’s, (CA) IDR at ‘AA-‘ and ULTGOs at ‘AAA’; Outlook Stable