Moody’s Investors Service last week upgraded St. Peter Independent School District 508’s general obligation rating one notch to Baa1, affecting $1.6 million of debt. Analysts said they expect the district’s financial position will remain stable given management’s conservative budgeting practices and reserve policy.
The Baa1 rating is supported by a moderately sized $1 billion tax base that benefits from a favorable location in Nicollet County within the Twin Cities/Mankato growth corridor. The tax base is expected to continue to grow but at a slower pace due to the current economic environment and softening of the real estate market.
After two years of operating surpluses, fiscal 2009 ended with an operating deficit of $279,000, leaving $1.21 million a general fund balance, a satisfactory 6.8% of general fund revenue. Enrollment is expected increase after years of decline.