LHSD Local Taxpayer Savings to Top $911,000
Office of the Treasurer
Submitted by: Paul Shaw

Similar to refinancing a home mortgage, the School District is currently refinancing the Series 2005 Refunding Bonds for interest cost savings that will flow back to the taxpayers. “The School District, School Board and Administration strive to be financially prudent. Upon investigation and analysis, it has been determined that the School Board should refinance the bonds that were used to construct school buildings across the School District. One hundred percent (100%) of the savings will flow back to the taxpayers in the form of a reduced tax millage rate/reduced real estate taxes”, said Paul Shaw CPA, Treasurer and Chief Fiscal Officer. “The School District itself will not see any of these savings.” In total, the refinancing will save the local taxpayers $911,937 in interest savings over the remaining term of the 2015 Bonds (through 2025). This translates to an average possible tax millage reduction of approximately .19 Mills beginning in 2016 for the taxpayers. The actual millage reduction will be determined by the Hocking County Budget Commission prior to the end of 2015. It will be based upon current taxable assessed values within the District and the revised annual debt payment requirements.

Moody’s Investors Services (Moody’s) has announced that Logan-Hocking Local School District will maintain its “Aa2” credit rating. Moody’s report, dated July 24, 2015, states the District’s strength’s as being a moderately-sized, stable tax base, healthy general fund cash reserves and a low debt burden while mentioning its weaknesses as smaller than average tax base for the “Aa2” category school and below average demographics.

Treasurer Shaw and his staff have worked diligently over the past several months to gather historical and projected financial data as well as demographic information to assemble a presentation for Moody’s. Shaw and Superintendent Steve Stirn then gave a several hour presentation via conference call to a Moody’s analyst in Chicago on July 16, 2015. The rating announcement was made on July 24, 2015.

Mike Burns, Director of Robert W. Baird & Co., Inc. (Columbus), remarks that “maintaining this rating is key to help preserving the financial health of Logan-Hocking LSD. An “Aa2” credit rating is very strong in today’s market and places the District amongst some of the highest rated school districts in Ohio. With this rating, the District was able to obtain an extremely low cost of financing, which will provide significant savings back to the hardworking taxpayers.” There are currently approximately 357 school districts in Ohio that are currently rated. Out of these schools, only 31 schools have a higher rating than Logan Hocking LSD.

“Treasurer Shaw and Superintendent Stirn, along with the guidance from our banker, have put a lot of extra hours into becoming prepared for the presentation to Moody’s. The Logan-Hocking Local Board of Education is very pleased to be able to announce that the School District maintained the “Aa2” bond rating, but more importantly we are happy to announce that we are saving the taxpayers over $900,000 over the remaining term of the bonds”, stated Kathy Krumlauf, Board President.

For additional information and questions, please contact Paul Shaw at (740) 385-8510 extension 2725 or pshaw@lhsd.k12.oh.us.

Ohio School District Credit Rating Facts

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