Heath City Schools Upgraded by Moody's
Moody’s Investors Service has upgraded the Heath City School’s general obligation unlimited tax (GOULT) bond rating to Aa3. By doing so, Heath Schools is now among the top third of all school districts rated by Moody’s in Ohio. The District was formerly rated A1. The Aa3 GOULT rating reflects the Heath City School District’s strong financial condition, growing tax base tied into the Columbus metropolitan area, and moderate debt burden.
“This is a significant achievement for our district,” said Heath Treasurer, Karl Zarins. “If and when the district would borrow money, the interest rate should be lower because of this rating. We earned this upgrade because everyone is working towards the same goal and because of outstanding community support, for which we are extremely grateful. This rating upgrade is a reflection of the financial strength of the District and the strength of the community.”
Moody’s Investors Service states that “Heath City School District … is expected to maintain a very strong financial position, following substantial growth in reserves from prior years. Increasing property taxes and state aid have boosted revenue, while management has carefully controlled expenditures. The district’s tax burden is moderate.”
On a cash basis, the Heath City School District’s available General Fund balance rose to $10.2 million as of 6/30/19 at fiscal year-end; or slightly over 6 months of cash reserves on hand. The District continues to work to reduce its expenditure volatility in benefit costs and capital improvement needs. When the District passed its last new levy six years ago, it was anticipated that no additional monies would be needed until 2018. Through prudent fiscal management, District administration does not anticipate a need for a new operating levy until 2024 at this time. However, the District is evaluating options to fund its capital needs to prevent the use of educational dollars for its building needs and to put the District in solid financial position for decades to come. It is the District’s belief that financial stability leads to operational stability, which allows the District to continuously improve the educational experiences and academic achievement of its students.
The District’s financial consultant, David J. Conley, President of Rockmill Financial Consulting, LLC of Lancaster, Ohio says, “Moody’s upgrade is proof that the District’s ongoing efforts to improve its financial condition through prudent management of resident’s taxes, is working. Continued practices of spending wisely and in managing the District’s debt could position the District to save taxpayers millions of dollars in interest in the long run.”