{"id":4764,"date":"2013-07-18T10:37:40","date_gmt":"2013-07-18T14:37:40","guid":{"rendered":"http:\/\/www.l-a-k-e.org\/blog\/?p=4764"},"modified":"2013-07-18T10:47:33","modified_gmt":"2013-07-18T14:47:33","slug":"moodys-confirms-excellent-bond-rating-for-lowndes-county-school-district","status":"publish","type":"post","link":"http:\/\/www.l-a-k-e.org\/blog\/2013\/07\/moodys-confirms-excellent-bond-rating-for-lowndes-county-school-district.html","title":{"rendered":"Moody’s confirms excellent bond rating for Lowndes County School District"},"content":{"rendered":"

Lowndes Schools’ decrease of $4.1 million in annual bond payments after 2013\r\nis more than the total\r\n\r\n$3.6 million in bonds Dublin Schools issued<\/a>\r\nto pay for their\r\n\r\nmegawatt of solar power<\/a>.\r\nSo Lowndes Schools could float bonds for\r\n\r\nsolar panels at Lowndes High School<\/a>\r\nlike Dublin Schools did for\r\n\r\nDubin High School<\/a>.\r\nOr on the new Pine Grove Middle School,\r\nwhich already has some\r\n\r\nenergy efficiency features<\/a>.\r\nEither would decrease outgo in the future, thus evening up the financial structural balance and increasing reserve levels.\r\n\r\nThe SPLOST mentioned by Moody’s is the educational ESPLOST,\r\nwhich \r\npassed by more than 4 to 1 in March 2011<\/a>.\r\n

\r\n<\/a>\r\nMoody’s PR 17 July 2013,\r\n\r\nMoody’s confirms Lowndes County School District, GA’s Aa3 GO rating<\/a>,\r\n

\r\n\r\n

\r\n$34.9 million in GO debt affected\r\n<\/H4>\r\n

\r\nNew York, July 17, 2013 — Moody’s Investors Service has confirmed the Aa3 general obligation \r\nrating of Lowndes County School District, GA. The Aa3 rating \r\naffects $34.9 million in outstanding general obligation \r\nbonds. The bonds are secured by the district’s general obligation, \r\nunlimited tax pledge but are expected to be paid from proceeds of a one \r\npercent Special Purpose Local Option Sales Tax (SPLOST). The district \r\nhas an additional $10 million in general obligation bonds not rated \r\nby Moody’s.\r\n<\/P>\r\n

\r\nSUMMARY RATING RATIONALE\r\n<\/P>\r\n

\r\nThe confirmation of the Aa3 rating reflects the district’s sizeable \r\nand growing tax base, SPLOST support of debt service, modest \r\ndebt burden, and rapid payout. The rating also incorporates \r\nthe district’s below average socioeconomic indicators and recent \r\ntrend of General Fund operating deficits. Excluding a slight 1.7% \r\ndecline in fiscal year 2011, Lowndes County School District has \r\nconsistently experienced growth in the $3.87 million tax \r\nbase, which is expected to continue going forward. The base \r\nbenefits from the institutional presence offered by Moody Air Force Base, \r\nValdosta State University (A1\/stable), and South Georgia Medical \r\n\r\n<\/a>\r\nCenter (A2\/stable). The current SPLOST is authorized through September \r\n2017 and should provide sufficient revenues to make debt service payments. \r\nIn fiscal year 2012, SPLOST revenues were $12.4 million \r\ncompared to debt service payments of $12.2 million. \r\nFollowing fiscal year 2013’s payment of $12.1 million, \r\nthe district’s payments will decline to just under $8 million \r\nannually. Amortization is rapid with all debt fully matured by \r\nfiscal year 2018. The district does not have any plans to issue \r\nadditional debt.\r\n<\/P>\r\n

\r\nThe district’s General Fund operations have been challenged as state \r\naid has declined as has federal aid. Fiscal year 2012 marked the \r\nfourth consecutive year the district drew on General Fund reserves for \r\noperations, reducing the fund balance to $9.65 million \r\nor a satisfactory though below average 11.2% of revenues. \r\nDistrict officials report another draw of about $3 million in fiscal \r\nyear 2013 and have appropriated $3.4 million of fund balance \r\nfor fiscal year 2014. The trend of structural imbalance and continued \r\nuse of fund balance is a credit weakness. Future reviews will focus \r\non the ability of the district to maintain adequate reserves.\r\n<\/P>\r\n

\r\nSTRENGTHS\r\n<\/P>\r\n