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Treasurer: S&P affirms AAA rating; district cites $41M saved via refundings and outlines bond strategy
Summary
Treasurer reported Standard & Poor's maintained the district's AAA rating after recent bond refundings, described $41 million in cumulative taxpayer savings from refundings since 2012, and connected those financial actions to a 'no new millage' bond plan to address school capacity amid rapid growth.
Treasurer Jenkins told the board that Standard & Poor's affirmed Olentangy Local Schools’ AAA rating following a bond refunding and accompanying rating review. Jenkins credited the rating to a combination of experienced management, positive operating results, a robust tax base and steady assessed valuation.
Jenkins detailed the district’s refunding strategy: since 2012 the district has pursued refundings when market conditions allowed, completing two refundings in the current year and saving roughly $2.3 million on the most recent transaction. He said the cumulative savings from refundings total just north of $41 million. "Since 2012, we have done, I believe, 12 refundings...the cumulative total of what we saved our taxpayers is just north of $41,000,000," Jenkins said.
Treasurer remarks also explained reserves and legislative risks. Jenkins said the district’s carryover/reserve position is about 40 percent and noted that proposed state limits on carryover (discussed in pending legislation such as House Bill 96) could affect credit ratings and planning. He described how lower permitted carryover levels would constrain fiscal flexibility and could prompt rating agencies to re-evaluate capacity to meet obligations.
Superintendent Meyer and the treasurer framed these financial positions as part of a "no new millage" bond strategy: officials say the bond certificate on the ballot is structured to build an elementary and a high school without raising the district’s tax rate. Jenkins said that without the refundings and other cost‑saving measures the same capital program would have required additional millage.
Next steps: the board will consider the bond proposal and continue outreach about the no-new-millage approach; voters will decide the measure when it appears on the fall ballot.
