Community Unit School District 308 Receives Second Highest Ratings on its General Obligation Refunding School Bonds

Oswego, Ill. (February 5, 2016) — Moody’s and Fitch have assigned high ratings of Aa2 and AA, respectively, to Community Unit School District 308’s $103,420,000 General Obligation (GO) Refunding School Bonds, Series 2016.

“With these ratings, District 308 moves one step closer to lowering the tax burden of our residents, which is one of the board’s top priorities,” Board of Education President Matt Bauman said.

As stated by Moody’s, Aa2 rating reflects the district’s large tax base, above-average demographic profile, satisfactory financial position, and elevated debt burden.

Fitch’s rating of AA is in line with Moody’s rating of Aa2.

According to Fitch, “The district has maintained sound financial reserves despite limited ability to raise property tax revenues in an environment of declining equalized assessed values (EAV)”.

“The new ratings are a clear indication for residents that Community Unit School District 308 is committed to providing the best quality education to all students while remaining mindful of our promise to taxpayers to be fiscally accountable,” Associate Superintendent of Schools Dr. John Sparlin said.

Proceeds of the Series 2016 bonds will be used to refund the district’s remaining General Obligation (GO) School Bonds, Series 2007 and portions of its General Obligation (GO) School Bonds, Series 2003C, and General Obligation (GO) Capital Appreciation School Bonds, Series 2005. The expected sale date for the Series 2016 bonds is February 10, 2016.

“Bond ratings are critical in the financial marketplace where higher ratings can attract a lot of investors, which in turn garner lower interest rates,” Assistant Superintendent for Business and Operations Ali Mehanti said. “It’s like having an excellent credit score, which can help in obtaining low interest credit cards. There are a lot of factors that assist a district in obtaining a better bond rating, including awards.”

District 308 won the Certificate of Excellence in Financial Reporting and the Meritorious Budget award for the 2014-2015 school year.