Bond Ratings were released for Salina USD 305 by two of the three premier bond rating agencies, Moody’s Investors Service and Fitch Ratings. The bond ratings released were Aa2 bond rating from Moody’s and a AA bond rating from Fitch. The purpose of a bond rating is to serve as a financial indicator to potential investors of debt securities such as bonds.

Maintaining a favorable bond rating is important for the district as it helps to lower the interest rate on the bonds and, in turn, reduces the interest expense for the taxpayers in the district.

On April 8, 2014, district voters approved a referendum authorizing the issuance of the bonds which will primarily finance the renovation of the district’s high school facility as well as improvements to middle and elementary school buildings. The bonds are scheduled for negotiated sale the week of May 19.

The high bond rating incorporates the district’s moderately sized tax base serving as the economic center for the surrounding areas; management’s ability to maintain a healthy reserve position despite flat enrollment and declining state aid; and high debt burden somewhat mitigated by state support for debt service and a minimal impact on the overall mill levy.

Strengths identified by the rating agencies included:

· Moderately sized tax base serving as economic center for the region

· Strong and conservative management team

· Stable and satisfactory reserve levels

“We are always looking for ways to save money that do not affect students,” said Superintendent Bill Hall. “The board has done a good job of planning and this affirms their sound, fiscal stewardship.”