Olentangy retains top credit standing; recent refundings save taxpayers $2.3M this year and about $41M since 2012

Olentangy Local Schools' treasury staff on Aug. 27 told the board the district maintained a top investment-grade credit standing in a recent Standard & Poor's review and summarized savings from recent bond refundings.

S&P rating and context: The district's rating-review presentation said Standard & Poor's affirmed the district's high investment-grade rating, citing a thorough management team, positive financial results over the past four years, a robust tax base and growing assessed valuation. "The district has continued its AAA-equivalent rating with Standard and Poor's," the treasurer said.

Refunding savings: The district completed a bond refunding this year that will save roughly $2.3 million for taxpayers; officials said combined refundings since 2012 have reduced district debt-service costs by about $41 million. The treasurer explained refundings replace older debt with lower-interest securities and stressed the cumulative taxpayer savings.

Reserves and state proposals: Treasury staff said the district's carryover/reserve is about 40 percent of annual operating needs following precautionary actions taken amid state-level proposals. The presentation noted that proposed restrictions on carryover (discussed in state legislation and in the property-tax study committee) could harm local credit ratings and increase borrowing costs. Officials told the board they had acted conservatively given uncertainty over House Bill 96 and similar proposals.

Bond issue context: Earlier in the meeting the board president reminded the public that a board-approved bond issue (described as a "no new millage" levy for building projects) will appear on the fall ballot. District leaders said the ballot language intends not to raise tax rates above current levels; the superintendent reiterated that the district has certified it will not collect the potential additional millage if the ballot language would otherwise lead to higher collections.

Ending: Treasury staff said the combination of strong fiscal practices, refunding activity and the district's tax base positions Olentangy to borrow at favorable rates should the board pursue ballot-authorized construction funding.