Lowndes Schools’ decrease of $4.1 million in annual bond payments after 2013 is more than the total $3.6 million in bonds Dublin Schools issued to pay for their megawatt of solar power. So Lowndes Schools could float bonds for solar panels at Lowndes High School like Dublin Schools did for Dubin High School. Or on the new Pine Grove Middle School, which already has some energy efficiency features. Either would decrease outgo in the future, thus evening up the financial structural balance and increasing reserve levels. The SPLOST mentioned by Moody’s is the educational ESPLOST, which passed by more than 4 to 1 in March 2011.
Moody’s PR 17 July 2013, Moody’s confirms Lowndes County School District, GA’s Aa3 GO rating,
$34.9 million in GO debt affected
New York, July 17, 2013 — Moody’s Investors Service has confirmed the Aa3 general obligation rating of Lowndes County School District, GA. The Aa3 rating affects $34.9 million in outstanding general obligation bonds. The bonds are secured by the district’s general obligation, unlimited tax pledge but are expected to be paid from proceeds of a one percent Special Purpose Local Option Sales Tax (SPLOST). The district has an additional $10 million in general obligation bonds not rated by Moody’s.
SUMMARY RATING RATIONALE
The confirmation of the Aa3 rating reflects the district’s sizeable and growing tax base, SPLOST support of debt service, modest debt burden, and rapid payout. The rating also incorporates the district’s below average socioeconomic indicators and recent trend of General Fund operating deficits. Excluding a slight 1.7% decline in fiscal year 2011, Lowndes County School District has consistently experienced growth in the $3.87 million tax base, which is expected to continue going forward. The base benefits from the institutional presence offered by Moody Air Force Base, Valdosta State University (A1/stable), and South Georgia Medical Center (A2/stable). The current SPLOST is authorized through September 2017 and should provide sufficient revenues to make debt service payments. In fiscal year 2012, SPLOST revenues were $12.4 million compared to debt service payments of $12.2 million. Following fiscal year 2013’s payment of $12.1 million, the district’s payments will decline to just under $8 million annually. Amortization is rapid with all debt fully matured by fiscal year 2018. The district does not have any plans to issue additional debt.
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