The William Floyd School District was recently assigned an upgraded Aa3 rating by Moody’s Investor Services, the fourth highest in Moody’s Long-term Corporate Obligation Rating, signifying the district’s finances to be of high quality and subject to very low credit risk.
According to the report, Moody analysts said that the Aa3 rating reflects William Floyd’s “sound financial operations with healthy reserve levels, large tax base with average wealth levels, and manageable debt burden. The rating also incorporates the recent use of reserves to reduce the district’s debt burden.”
According to David Beggins, Assistant Superintendent for Business, William Floyd School District, a high bond rating helps to keep the interest rate low for all types of borrowing including annual tax anticipation notes (when needed) along with all types of bonds.
“Tax anticipation notes are required as bridge loans, for short periods of time, to provide funding prior to tax receipts being received from the Town of Brookhaven,” said Mr. Beggins. “These are notes normally issued by states, municipalities and local government agencies. When taxes are received, government entities such as school districts use the proceeds to pay off the tax anticipation note. Consequently, a higher credit rating means a lower interest rate which is a benefit to all taxpayers in the community.”
“We are thrilled that Moody’s Investor Services has upgraded the bond rating of the William Floyd School District,” said Kevin M. Coster, Superintendent of Schools, William Floyd School District. “With the fiscally responsible decisions of the Board of Education and the great work occurring in the Business office under the leadership of Mr. Beggins, we continue to be good stewards of the community’s resources. This upgraded rating is a validation of the work that we are doing.”