FOR IMMEDIATE RELEASE - February 10, 2017
Standard & Poor’s (S&P) Rating Services has upgraded Olmsted Falls City Schools’ long-term credit rating from an “A+” to “AA-.” This upgrade is due in part to the passage of the district’s zero additional taxes bond issue on the November 2016 ballot.
“Olmsted Falls has a history of strong fiscal management practices that protect taxpayer resources,” said Treasurer Emily Dales. “With the passage of the recent ballot issue the district will not have to pull money from the district’s day-to-day operations to pay for necessary renovations and repairs. This puts the district in a much better financial position and will ultimately save taxpayers thousands of dollars because of the higher credit rating.”
S&P provides credit ratings for school districts as a reflection of the district’s financial history, current financial situation and the district’s ability to pay its debts in the future. There are nine different categories of ratings with AA being the second highest possible category. This indicates that the district’s ability to meet its financial obligations is very strong.
“Olmsted Falls City Schools is effective and efficient in our day-to-day operations,” said Superintendent James Lloyd, Ed.D. “We have the third lowest expenditure per pupil out of the 30 school districts in Cuyahoga County. We make smart decisions with our precious resources and this upgrade in our long-term credit rating reflects our dedication to strong fiscal management practices.”
The district will use the new bond rating to minimize the fees and interest payments the district will have to make when it sells the bonds from the November 2016 ballot issue. “Just like with personal home mortgages, higher credit ratings allow borrowers to qualify for better interest rates and loan programs,” explained Dales. “The same is true for school districts. By qualifying for this higher credit rating, the district can sell our bonds at a better rate, ultimately saving taxpayers money.”
To read the full report from S&P regarding the district’s enhanced long-term credit rating, please click HERE now or visit the OFCS Treasurer's web page anytime at www.ofcs.net/treasurer.
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