LEMONT – Standard & Poor’s has raised Lemont-Bromberek Combined School District 113A's bond rating from A+ to AA with a stable outlook, according to a district news release.
The update was based on a revised review of the district’s improved cash flow and financial position because of strong fiscal management, the release stated. The last rating was from 2013.
The upgrade reflects the significantly strengthened available reserves resulting from eight consecutive years of general fund surpluses and the village of Lemont’s maintained economic indicators that are comparable with those of AA-rated peers, according to the release.
At the close of the 2016-17 fiscal year, the audited fund balance for operating funds is $11.9 million, the release stated. That represents 50 percent of expenditures. The district ended fiscal years 2015 and 2016 with an operating surplus of $2.5 million and $2.9 million, which contributed to this fund balance, according to the release.
The 2017 cash report shows a $2.2 million general fund surplus, and the 2018 budget calls for a general fund surplus of $989,000, the release stated.
About nine years ago, the district went through a financial crisis and relied on tax anticipation notes for liquidity, according to the release. Focus in the district has been on long-term planning in all areas, including facility management, enhanced technology implementation, professional development for staff, and relevant and updated curriculum investment.
The current administration and Board of Education have demonstrated their ability to plan and implement corrective procedures, in addition to maintaining strong and sound financial management practices, the release stated.