Warren County R-III School District officials learned last week its Series 2006 general obligation bonds have been upgraded to "A+" from "A" following a routine review by Fitch Ratings. The district's upgrade reflects improved financial stability and reduced capital needs, according to a release. The Fitch Ratings also termed the district's financial situation as "stable." Pam Frazier, the school district's chief financial officer, had been concerned the district might face a slight decrease due to the current economic uncertainty. She said the district's reserve fund increased to $4.5 million in 2008-09 from $3.7 million the previous year. "We're proud of ourselves that we've been fiscally responsible," Frazier said. "Even though the economy is not looking good, they felt we were still credit-worthy enough to improve our rating." The rating increase was welcome news for other school officials. "It's a bid deal," said Dale Schowe, school board president. "It means we're very financially sound and using taxpayers' money to the best of our ability." Fitch Ratings is a global rating agency that provides credit markets with an independent and prospective credit options. Frazier explained that the rating system is similar to a student's grade card. The district had an "A" rating for at least 5 1/2 years, according to Frazier. She believed that a restructuring of the district's debt program earlier this year caught the attention of Fitch Ratings. "(Superintendent) Dr. (John) Long and the board feel like we're in good financial situation right now," Frazier said. "It's nice to know that somebody else looking from the outside sees that also." The district is working on a $28 million budget, an increase from $27.6 million from the year before. The budget included a wage increase for district employees, another factor considered in the rating system, Frazier said. During the summer, the school board voted to increase wages 5 percent for certified teachers and noncertified hourly staff. Noncertified salary staff received a 4 percent bump in pay. The school board reached the decision despite some opposition from staff who complained that the third year of a pay scale increase was supposed to be 9 percent. Frazier said the financial outlook from Fitch Ratings has shown that the district should be able to keep wages at the same level without making cuts. "They think we will be able to maintain what we have," Frazier said. She also noted previous talks with district administrators have been held to watch spending. "Last year, we asked everyone - all the principals and directors - that you have a budget and you need to be spending it conservatively," Frazier said. "We said if you need it, fine, we're not going to take that money away from you. But don't buy things that you don't really need." Frazier pointed out that district officials learned last week $1.5 million of the funding received from the state is being paid for by federal stimulus money due to budget constraints. Looking ahead to next year, officials are unsure how those shortfalls will be covered again or if less funding will be received. "We know we have to be conservative right now," Frazier stated. The district also is helped by not having any pressing capital improvements on the horizon. While officials have discussed building an alternative school and making renovations to Daniel Boone Elementary, Frazier noted no major construction projects are needed until the district's enrollment increases about 1,000 students. The district's enrollment is currently around 3,000 students.