Page 3 - Feb2018BPSNews

BPS earns ‘healthy’ credit ra ng as debt drops
By Ma Reed, assistant superintendent, Government and Community Rela ons
Brevard Public Schools has earned a solid credit ra ng from Moody’s Investor’s Service, which cited the district’s healthy nances and declining debt.
“The district’s nancial posi on is healthy overall,” the ra ng service says in new annual report. “The credit posi on also re ects a manageable debt burden and a moderate pension liability.”
Moody’s Aa2 bond ra ng is the third-best it awards to governments and slightly above the na onal median for school districts.
“This evalua on by Moody’s is an
a rma on that our board’s scally responsible policies are leading Brevard Public Schools in the right direc on,” said BPS Superintendent Desmond Blackburn. “It shows that looking inward for money for new ini a ves while being disciplined to maintain a healthy reserve has kept us on solid foo ng in the eyes of the professionals
who evaluate governments. And it is a
further sign of how the voter-approved
sales surtax for school repairs and security
has stabilized BPS’ nances overall.”
Other strengths for Brevard include a “very healthy economy and tax base,” Moody’s says.
The posi ve bond and credit ra ng ma ers to BPS even though the school board has commi ed to a long-term plan for school construc on that calls for no new borrowing or new types of taxes. The credit ra ng could save the district on other costs such as banking fees or re nancing debt, said BPS Chief Financial O cer Pennie Zuercher.
Much of Brevard Public
Schools’ exis ng debt stems from construc on and expansion of schools during a development boom on the Space Coast in the early 2000s.
BPS has slowly but steadily reduced that debt from $512.1 million in 2012 to $446.7 million in 2016. According to Moody’s, the district’s
debt as a percentage of its “full value” (the value of all its assets) is 0.8 percent, lower than the na onal median for school districts.
Future schools planned for Viera and West Melbourne will be built with impact fees on new development in those areas, according to BPS’ ve-year capital plan.
Said Zuercher: “I’m excited to see Moody’s con rma on of the great work being done to manage the district’s nancial posi on. The Finance team -- with the support of the school board, superintendent, and cabinet -- have
worked hard to help place the district in a posi ve nancial posi on that is recognized by external analysts.”
For more info contact your elementary school’s after school coordinator or 321-633-3660 ext. 111