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Board hears credit-rating upgrade and discusses using reserves for capital projects
Summary
Board member said KB Global raised Wyoming Valley West's credit rating, and the finance committee proposed assigning accumulated reserves to a capital program; board approved routine finance items during the meeting.
Wyoming Valley West School District officials reported an improved bond credit rating and discussed plans to use accumulated reserves for capital work, the school board heard at its Jan. 15 regular meeting.
"Our rating has increased from B+ to an A minus," Finance Committee member Mr. Keating told the board, citing a preliminary report from KB Global, a credit rating agency that reviewed the district's finances. Keating said the upgrade reflected materially improved operating reserves after management implemented cost-cutting measures, one-time federal aid and favorable state aid.
Keating outlined factors the rating report cited: stronger operating reserves, reduced staff attrition followed by rehiring to meet district needs, debt restructuring and bringing some special-education functions back in-house. He said those changes produced sizable surpluses over a relatively short period and helped move the district away from previously negative audited fund balances that at one point prompted concerns from the auditor general.
"It puts this district...in a spot" to pursue capital projects, Keating said, and the finance committee's next step will be to consider assigning the cash balance to "a true capital program," including campus improvements and replacing buildings past their useful life. Keating referenced a prior auditor general recommendation that similar-size districts carry an $8 million to $9 million fund balance; he said the district now meets that target.
Board members praised staff work on the review and credit-rating process. The presiding officer thanked finance staff, saying "Rob did a really nice job at explaining the information to them," and other members noted the district's recent financial turnaround.
The board approved several routine finance and staff recommendations during the meeting, including general recommended action items, staff recommended items, and finance items such as bills for payment and the treasurer's report. Roll-call votes recorded board members voting in favor of the listed finance items; specific line-item details for each approved item were not discussed on the floor.
No new borrowing or specific capital project was authorized at the Jan. 15 meeting; Keating said the finance committee will take further steps to evaluate unfunded debt service and how to allocate the fund balance to capital needs.
