Press Release - PCS Financial Rating

May 22, 2015
Piqua City Schools Financial Rating Increased to Stable
Strong Fiscal Management and Community Support Factors in Upgraded Rating

Standard & Poor’s (S&P) Rating Services has upgraded Piqua City Schools’ long-term credit rating from an “A+” to “AA-.” This upgrade is due in part to a history of strong community support, very strong general fund reserves and good financial management practices.

“Our entire school district has been working hard to earn the public’s trust with how we manage our financial resources,” said Superintendent Rick Hanes. “This change in our rating is a reflection of that work and in our commitment to being a good partner with our community.”

S&P’s Ratings Direct Report noted that Piqua City Schools has sustainable projections for very strong reserves with a general fund cash balance in excess of at least 15 percent of expenditures for the foreseeable future. This surplus is great news and was achieved through income tax and state aid growth, coupled with the district holding the line on health care costs and other expenditures. The S&P analysts considered the financial management practices of the district as “good.”

“We have taken a conservative approach to managing our finances,” said Treasurer Jeremie Hittle. “We have been mindful of the taxpayer’s dollars and made adjustments when needed to ensure that Piqua City Schools was in a strong financial position.”

The report also notes the strong support from the community. Piqua City Schools’ voters have approved six consecutive new or renewal ballot issues, indicating that they believe in the good value the district provides to the community.

“We are so thankful for the continued support of our community,” said Hanes. “It is because of this great partnership that we are able to keep great teachers in our new and improved classrooms as well as earn this higher financial rating. This will continue to strengthen the already great opportunities for Piqua students and our community.”

Much like a credit score for individuals, S&P’s Rating Services provides forward-looking opinions related to credit risk for individual corporations, government agencies and school districts. The ratings are based upon Generally Accepted Accounting Principles (GAAP) as well as other high industry standards. S&P ratings range from “D” up to “AAA.” A rating of “AA” indicates an organization’s “very strong capacity to meet financial commitments.”

You can read the full report as well as more information about the Piqua City School District online at www.piqua.org.