Moody's Upgrades Sayville to Aa1 Rating

Moody's Upgrades Sayville UFSD to Aa1!

 

Your Board of Education and Administrative team are always looking for ways to reduce costs while simultaneously enhancing educational opportunities for our students. We are happy to report that due to the District’s sound fiscal management and solid fiscal position, Moody’s Investors Service has upgraded the District’s bond rating from Aa2 to Aa1.  This is the highest bond rating possible, and will serve to reduce the District’s future borrowing/debt service costs.

In the most recent report, Moody’s summarized some of the reasons for Sayville’s top rating:

“The Aa1 rating reflects the stable tax base with below-average wealth levels, well-managed financial position with satisfactory reserves, and elevated debt burden with average payout.” Sayville achieved this upgrade as a result of the district’s “long history of strong management reflective in the healthy reserves and liquidity over the last five years.”

As an example of Sayville’s strong fiscal management, Moody's cited the strategically timed refinancing of the 2008 and 2010 Bonds that coincided with Sayville’s Debt Service reduction in the 2016-2017 school year. This prudent approach yielded the District a significant $2 million savings over the remaining life of the bonds.

“Moody's Investors Service has assigned an Aa1 rating to the Sayville Union Free School District's (NY) $13.5 million School District Refunding (Serial) Bonds, 2016. Concurrently Moody's has upgrades to Aa1 from Aa2 rating on $26.8 million of parity general obligation debt, including the current offering.”

 

Other factors the investors service considered was Sayville’s stable tax base as maintained by the Districts use of Fund Balance reserves. The Moody’s report states:

“The district has consistently maintained strong reserve levels over the last five years, and ended fiscal 2015 with a surplus increasing General Fund balance to 30.2% of revenue; notably the fifth surplus over a six year period. Officials had anticipated drawing on reserves, however, given conservative budgeting of revenues and expenditures fully replenished the appropriation and added to fund balance. Operations are supported primarily from stable property taxes (68.7%) and state aid (28%) revenues that are sensitive to cutbacks. The primary expenditures are instruction and support services representing 52.7% and 36% of fiscal 2015 expenditures, respectively.”

 

Although reductions in State Aid began in 2009, Sayville has weathered through these turbulent economic times to emerge as stable as ever.  Over the past few years, the Proposed Budgets have been well under the Tax Levy Cap and have reduced spending while at the same time maintained, restored, and enhanced programs that benefit our students. Last May, with additional State Aid for the upcoming academic year, the voter-approved 2016-2017 School District Budget saw a decrease of -0.80 % to the Homestead tax rate, the second lowest in Suffolk County.   Upholding its commitment to Sayville residents, Sayville School District’s Administrators and the Board of Education will continue to work diligently to present a fiscally responsible spending plan that manages cost and keep taxes low. 

 

Receiving this Aa1 rating is validation of the long-range planning by Sayville District Business Office Assistant Superintendent John J. Belmonte who has spearheaded fiscal operations since 1999. In addition, the Aa1 rating acknowledges the involvement of all Sayville District Administrators, faculty and staff, along with the Board of Education members and Sayville residents who have continually given their support to cost-saving measures throughout these challenging times.

 

Moody’s credits the District’s forward-looking fiscal planning for achieving the highest rating and projects that “Sayville UFSD's strong financial position will remain healthy given sound fiscal management with conservative budget practices.”

 

To read the full Moody’s Investor Service report, click on the link* below.