District 80 receives A3 bond rating

May 08, 2008 10:31 am

— Listen To The Story
By TESA CULLI
tesa.culli@register-news.com
MT. VERNON — District 80 has received an A3 rating from Moody’s Investors Service for $1 million in working cash fund bonds.
“We met with Moody’s last week and had a lengthy interview on district finances,” District 80 Superintendent Kevin Settle reported to members of the board Wednesday night. “The A3 rating will ensure we get a very good rate on the bonds. We’ve been holding our breath hoping to get the rate we wanted, and we did.”
A hearing on the issuance of the bonds was held Wednesday, and the bonds are expected to be issued in June. Funds from the bonds will be used to restructure debt at the district and to complete maintenance projects such as the replacement of chillers at the Primary Center, enclosing the east walkway at Casey Middle School, renovating the stairway at Casey Middle School and renovating a bathroom at J.L. Buford Intermediate Education Center.
“We really don’t have a lot of outstanding debt,” Settle said. “The bond company has determined we are a very low risk.”
In addition, the board will hold a hearing in June on an end-of-the-year budget amendment.
“With two months to go, things are very close to what we proposed and projected,” Settle said. He said some items, such as the reimbursement on the old copy machine contract and the immediate outlay of funds for the new copy machine lease, $129,000 which was set aside for the chiller project which won’t be completed this school year are part of the budget amendment.
Expenditures for the district will be coming in $500,000 less than budgeted, and revenues will be coming in $60,000 less than expected.
“Who knows about the 23rd and 24th state aid payment and if we will receive it?” Settle said. “We’re anticipating not getting it, and that would offset the $500,000. If we get the money, we’ll have a pretty good year.”