LCS retains high financial health rating from Moody’s

lcs new logoLapeer Community Schools has received the Official Moody’s Financial Rating for the 2013 school year. Moody’s provides independent financial information to lenders for public and private companies, state and local governments as well as government agencies.

As part of this annual process, Moody’s reviews the District’s financial data, outstanding debt instruments, as well as budget performance, financial trends and demographic information. They utilize this information to develop an overall financial health “rating” of the District, which is published and distributed to financial institutions, government agencies, bond brokers and bond holders across the country. This rating is also available to the general public.

The Moody’s financial analyst indicated that many school districts would likely receive downgrades to their financial ratings this year as a result of declining student populations and deteriorating fund balance positions. However, as we began to explain and to demonstrate Lapeer Community Schools new direction and Strategic Plan, that included a plan for attracting new students, the Center For Innovation at the West Campus with opportunities for advanced students, as well as our consolidation and efficiency actions, the outlook brightened. He also did a detailed review of our labor agreements that showed a commitment by our employees to become “partners in success” with the District (by tying labor costs to student enrollment) and with our three-year balanced budget plan.

When the results became available, we are happy to report that the District was able to retain its Aa3 rating (a very solid rating) with Moody’s for the 2013 year. The details of this report are available at Moodys.com or at the Business Office of the District.

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