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Student-led annual financial report: Lexington earns AA ratings and flags Moors Creek Dam repair costs
Summary
A student team presented Lexingtons annual financial summary: Standard & Poors and Moodys assigned AA ratings; key capital items include an $8M RADS building and estimated $2—M repair at Moors Creek Dam (versus $60M to convert to a reservoir). General fund revenue was reported at about $24M for FY25.
Cadet Jane, presenting the citys annual summary prepared with faculty adviser Dr. Bing Jang and assistant Kevin Warren Lewis, told council that Lexington received AA ratings from Standard & Poors and Moodys for the fiscal year ending June 30, 2025. Those ratings, she said, support the citys position in municipal bond markets and could lower interest costs on future borrowing.
The presentation singled out capital projects and significant costs: a planned Rockbridge Area Department of Social Services (RADS) building estimated at roughly $8 million; city hall HVAC and renovation work estimated near $7 million; and an identified sinkhole at Moors Creek Dam discovered in December 2024. The estimate to remedy the safety hazard at Moors Creek Dam was reported at $2— million, while converting the site into a reserve water supply was estimated at roughly $60 million, a substantially higher cost the presenters said made repair the more economical near-term option.
Cadet Jane summarized fund-level figures: general fund revenue was about $24 million (down from $27M the prior year), governmental revenue roughly $31 million, and total city expenditures approximately $36.5 million for FY25. She also noted a roughly 62% increase in long-term debt from the previous year, while the citys debt remained below the approximately $68 million budgeted cap.
Council members asked clarifying questions about intergovernmental revenue declines and priorities. The student presenters characterized education, public safety, and public works as stable fiscal priorities despite the revenue fluctuations. The council thanked the student team for the work and acknowledged the utility of a concise synthesis of the comprehensive annual financial report.
