District Facilities Update
February 8, 2017
Throughout the next few years, it is important that the community is well informed about what is happening in regards to our district facilities projects.
- We have established our district design planning committees for both our elementary and high school. These groups met for the first time on February 2, 2017 (Elementary Planning Team) and on February 6, 2017 (High School Planning Team). These groups will be meeting several times over the next few months.
- We have also established a committee to study and plan the 5-8 middle level complex. This group will meet for the first time on February 8, 2017.
- Recently, district administrators traveled to meet with multiple insurance companies and bond rating companies to establish our ratings. The District's bond rating has a significant impact on our interest rate and increases potential investors.
Moody's Investors Service has upgraded to A1 from A2 Berea City School District, OH's General Obligation Unlimited Tax (GOULT) and General Obligation Limited Tax (GOLT) debt, and its certificates of participation (COPs) to A2. Concurrently, Moody's has assigned an A1 to the district's Series 2017 bonds. Post-sale, the district will have $143 million of rated debt.
The upgrade to A1 reflects the district's recent trend of operating surpluses and significant improvement in cash reserves. Additionally incorporated is the district's sizeable tax base, average socioeconomic characteristics and above average debt burden with elevated unfunded pension liabilities. The district's GOLT is also rated A1 given the presence of a full faith and credit pledge and because debt service is a first budget obligation under Ohio's ten mill limitation.
The A2 COPs rating reflects appropriation risk and the essentiality of the leased asset (an elementary school).