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District's Bond Rating Upgraded Again

District's Bond Rating Upgraded Again
Posted on 05/16/2017
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Five years after a financial crisis rocked Nampa schools, Moody’s Investors Service has upgraded its bond rating for a third straight year, confirming that the district is on firm financial footing.

Moody’s noted that since 2012, a combination of stronger internal controls and voter support of supplemental levy increases have ameliorated the district’s financial position. Of particular note was a commitment to add 1 percent of General Fund expenditures per year (around $750,000) to a reserve account until it met a minimum of 5 percent of the unassigned General Fund balance— a goal the district reached this year, one year earlier than anticipated. 

“The Nampa School District is committed to appropriate spending and internal controls,” said Nampa School District Finance Director Randy Dewey. “We recognize that it is important to use the money we receive from the public in a wise and prudent fashion, and we are dedicated to providing the best education to our students while maintaining a balanced budget.” 

According to Moody’s: “The upgrade to A2 reflects the continued improvement in financial operations, management’s demonstrated commitment to increasing reserves over several fiscal years and approval of its supplemental levy through fiscal 2018.” Moody’s also noted that some district bonds carry enhanced ratings from both the Idaho School Bond Sales Tax Guarantee and School Bond Credit Enhancement programs. 

The following strengths were noted for the district:

  • Stronger management yielding improved financial position
  • Past history of voter support for operating levies
  • Sizable, growing tax base in the Boise area

The district could receive another update in the future based on sustained improvement in financial position and marked improvement in district wealth and/or income levels.

See the full report here: https://www.moodys.com/research/Moodys-Upgrades-Canyon-County-SD-131-Nampa-IDs-GO-to--PR_903976152