District Receives Strong Bond Ratings from Moody’s Investor Services
Taxpayers expected to benefit from a lower interest rate on the district’s capital project bond.
The Mount Vernon City School District (MVCSD) has received welcome news from one of Wall Street’s top ratings agencies. For the second year in a row, the district received an A1 underlying rating and Aa3 enhanced rating from Moody’s Investors Services.
According to Moody’s rating scale, these ratings are indicators that the district is fiscally strong and has the capacity to meet its financial commitments. This is the second year in a row that MVCSD has received these strong ratings, and they remain the highest ratings the district has ever received from Moody’s.
The ratings are good news for Mount Vernon taxpayers. The tax impact of the district’s ongoing capital project is expected to be lower thanks to an anticipated lower interest rate on the bond.
“Thanks to this strong rating, we expect to get a better rate on this portion of the bond,” said Ken Silver, Assistant Superintendent for Business and Operations. “Taxpayers will benefit since we’ll be borrowing at a lower rate. We are very proud that Moody’s has recognized our continued efforts to be fiscally responsible.”
Since a new administration took the helm five years ago led by Superintendent Dr. Kenneth R. Hamilton, the district has had three 0% increase budgets and maintained the maximum fund balance allowed by law; all while increasing student test scores and graduation rates.
“The consistency of the district’s solid senior leadership has gotten the Mount Vernon City School District’s financial house back in order,” said Superintendent of Schools Dr. Kenneth R. Hamilton. “We take our fiduciary responsibilities to the Mount Vernon taxpayers very seriously, and we are proud to say that they are getting more than ever out of that investment with academic outcomes that continue to be on the rise.”
The Moody’s ratings come on the heels of news that eligible Mount Vernon residents have or will receive property tax credits by mail. The credits are a result of the district’s successful compliance with the 2018 New York State property tax cap. The checks, which can be upwards of hundreds of dollars, are expected to be delivered to homes by the end of the year.