The following article appeared in Gardner News/Spring Hill News.
“JCCC maintains the highest bond ratings”
Gardner News/Spring Hill News
December 13-15, 2006
From Johnson County Community College
According to a recently published report from Standard & Poor’s titled AAA-Rated Credits in U.S. State & Local Government Finance, Johnson County Community College continues to maintain the highest bond ratings, AAA.
Only 21 school districts in the nation, including five community college districts and one technical college district, had their government obligation debt rated AAA.
According to the report, general characteristics of AAA districts include growing tax bases and proximity to economic centers, very high wealth indices, strong management practices with a focus on multi-year planning, strong financial position, management of debt burden and appropriate ratios and rankings for average overall net debt per capita, average per capita market value and average general fund balance as a percentage of operating expenditures.
“Several years ago, the finance committee and the board of trustees wisely adopted a policy setting a minimum unallocated cash balance reserve for the general fund,” said Larry Tyree, JCCC interim president. “This action is certainly a major determining factor in the college’s AAA rating.”
In March 2004, Standard & Poor’s Ratings Services assigned the college a rating of AAA for general obligation bonds, series 2004, dated April 1, 2004, that will come due August 1, 2005 through 2008. These bonds were used to help construct the Regnier Center and the Nerman Museum of Contemporary Art on the college campus. Construction of both buildings should be finished in the late spring.
According to Standard & Poor’s, an organization rated BBB or higher is regarded as having financial security characteristics that outweigh any vulnerabilities and is highly likely to have the ability to meet financial commitments. An organization rated AAA has “extremely strong” financial security characteristics; AAA is the highest rating Standard & Poor’s assigns.