Moody’s Investors Service upgraded Liberty Central School District’s general obligation rating to A1 from A2, affecting $4.68 million of the New York district’s outstanding long-term debt.
Moody’s assigned an A1 rating to the district’s $9 million of school district serial bonds, Series 2010A.
The upgrade reflects the district’s strong history of financial operations, solid reserve levels evidenced by a fund balance equivalent to 19% of general fund revenues for fiscal 2010, the district’s $804 million tax base, and a low debt burden.
Moody’s believes the district’s financial operations will remain satisfactory given solid reserve levels recorded in recent years and the district’s commitment to maintaining strong, conservative budgeting practices.
Fiscal 2010 operating revenues exceeded operating expenses by $1.1 million. While the district transferred funds to the capital projects fund, total fund balance remained healthy at $7.6 million —or 19.3% of revenues — at the end of fiscal 2010.