Standard & Poor’s Rating Services (S & P) has increased Olentangy Local Schools’ credit rating from “AA” to “AA+,” the second highest rating possible. The increased rating means the district will receive a lower interest rate on its bond millagemaking it easier for the district to maintain the existing 8.72 total bond mills target for community members. In Ohio, only one other school district has a higher S & P rating than Olentangy Local Schools.
“This is excellent news,” said Olentangy Board of Education President Scott Galloway. “This is important for our community and is a testimony to the quality financial management this district has demonstrated time and time again. I applaud our Treasurer Becky Jenkins and all staff members for their continued efforts towards making Olentangy Local Schools a sound financial investment for all community members. I also thank our residents for their continued support at the ballot box, a factor which played a significant role in this rating upgrade.”
According to a S & P release regarding the rating, “the upgrade reflects the district’s good management of financial operations and its capital building program during a time of strong enrollment growth, that, coupled with voter support, allowed for maintenance of solid reserve levels over the past few years. The ‘AA+’ rating is also based on access to the deep and diverse Columbus metropolitan area employment base, very strong income levels and extremely strong wealth per capita, good management of the levy cycle and moderate overall net debt burden as a percent of market value”
“I am thrilled for the district and the community,” said Interim Superintendent Jenny Hooie. “Once again an independent outside organization has recognized the outstanding efforts by Olentangy staff members to effectively provide a high quality education at a reasonable cost to our taxpayers.”
S & P is a worldwide leader in authoritative financial market intelligence. According to www.standardandpoors.com, S & P provides credit ratings and credit risk analysis for approximately $32 trillion of debt issued in more than 100 countries. The higher the S & P rating the lower the risk the organization is for investors, which equates to lower interest rates for the organization seeking the rating. Organizations receive higher ratings by demonstrating strong financial management and performance.
Earlier this month, a team of Olentangy administrators, one board member and support financial experts presented the district’s case for the increased rating to a team of S & P representatives. The presentation included some of the district’s financial and academic highlights such as:
- Olentangy received the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association (GFOA) ten times in the past 11 years for its Comprehensive Annual Financial Report (CAFR). The certificate of Achievement is the highest form of recognition in the area of governmental financial reporting and its attainment represents a significant accomplishment by a government and its management.
- The district and the Board of Education have several community committees including the Finance and Audit Committee, Development Committee and School Funding Action Committee that actively assist the district in setting and achieving high level management goals.
- According to the Ohio Department of Education, Olentangy Local Schools has the lowest cost per pupil figure in our local comparison group of 13 schools, the second lowest in our state comparison group of 21 schools and is more than $1,000 below the state average.
- Olentangy spends 57.7 percent of the total cost per pupil on instructional areas compared to the state average of 55.6 percent and only 9.9 percent on administration compared to the state average of 12.3 percent.
- In January 2007, the district reduced existing and future staffing expenditures by more than $6.4 million.
- Olentangy’s 2006 median adjusted gross income of $69,046 ranked first compared with other school districts within Ohio.
- Besides having strong financial management skills, the district also demonstrates high academic achievement including both of Olentangy’s high schools ranking in the top 500 of the national NewsWeek challenge index rating and 54 students earning perfect scores on either the Ohio Graduation or Ohio Achievement Tests.