A press release from Cary Grade School District 26:
Cary School District 26 received notification from Standard and Poor’s Rating Services of a much improved bond rating.
Standard and Poor’s rated District 26’s bonds as AA.
The AA rating is three notches above its last bond rating received in 2010 of A2 (negative outlook).
The new rating was pursued by the district in conjunction with the Board of Education’s recent decision to refinance some current bonds in an effort to lower its debt, manage to the objective of the 2010 referendum, and provide some taxpayer relief.
“This is just another sure sign that the district is recovering from the financial challenges it has faced over the last several years,” said Superintendent Brian Coleman.
“It is a real credit to the continued support of District 26 by the Cary community as well as the sacrifices District 26 employees have made over the last several years to get us to an improved financial position.”
The Board of Education voted this last Monday to refinance its Series 2004 bonds to keep to the referendum objective, reduce future years bond and interest levies, and reduce the district’s outstanding debt by an estimated $165,000.
It is anticipated that the total savings to the taxpayers will be approximately $487,000 due to interest savings from the bond refunding and principal reduction.
Scott Coffey, Board Finance Committee chair stated, “Although we are not completely out of the woods financially, this clearly is another indication that the work and actions taken by the District are making a difference.”
A final determination of bond proceeds will be provided to the board next month following the potential sale of the bonds in early December.
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The Cary Elementary School District has a policy of issuing no non-referendum bonds. The proposal was put forward by Board member Chris Jenner. Jenner, recently elected to the McHenry County College Board, has proposed that MCC follow Cary’s example.
The argument was put forth at one Board meeting that placing such a restriction on the issuance of junior college bonds would hurt the college’s credit rating.