Moody's Gives School District 14 High Bond Rating

Financial ratings agency Moody’s has given the a rating of Aa1, the second highest ranking on its scale, a sign that District 14 has the monetary muscle to back up any bonds.

“The Aa1 rating reflects the district's strong financial position and demonstrated maintenance of reserves through annual operating surpluses,” Moody’s said in its report about the district. “The Aa1 rating also factors the expectation that the district's $4.2 billion, primarily residential tax base, will remain relatively stable in the near term, and the district's average debt profile.”

The high rating makes it easier for School District 14 to get good rates on bonds, which finance projects such as capital improvements, and could lead to savings for residents. Investors use the rankings to figure out which entities are less likely to default. The district says that the Aa1 rating should help it in planning to refinance bonds that were issued in 2002 to fund the expansion and renovation of .

“Responsible boards of education must always look to the future,” said Stephanie Gould, president of the Hewlett-Woodmere Board of Education, in a release. “When we issued the bonds in 2002, we had the foresight to make them callable so that we could refinance in a favorable market. School districts have an obligation to save money wherever possible. Fortunately, we have the expertise in place to go the extra mile.”

Dr. Joyce Bisso, superintendent of School District 14, said the rating makes planning for the future easier. “The Moody’s upgrade recognizes the district’s commitment to systemic and consistent long-range planning,” she said. “This approach is reflective of our planning across a broad range of District operations.”

The Moody’s report states the Hewlett-Woodmere area continues to benefit from its close proximity to New York City, which provides high paying jobs for many residents of the area. Although the agency expressed concern about falling housing prices, it said the district’s overall worth is increasing, thanks in part to changes in Nassau County’s assessment system. The report did point out that increasing retirement and health insurance costs is a challenge to the district.

“It’s fantastic. It shows we’re in a very solid position financially,” incoming board trustee Cheryl May said of the report. “You know what’s coming down the pipe with the tax cap. We have to hope things continue this way — things are going to be harder in the next two years.”