Dist. 87's rating upgrade good news for planned loans

A move to refinance two old debts at Glenbard High School District 87 revealed a little bit more good news than expected.

The district's credit rating was higher than anticipated, and the new rating will save taxpayers about $500,000 in the long run, Assistant Superintendent for Business Services Chris McClain said.

“There is a pretty favorable refinancing market right now and we want to take advantage of that,” he said.

The district's rating under the Standard & Poor credit agency has improved to AA+, a rating one notch below the top rating of AAA. McClain said this is partially because of the district's efforts to go from a budget that faced a $21 million deficit in 2005 to one that projected a budget surplus this year.

Officials have at times made some unpopular moves to balance its budget. A move to a third-party security firm has saved the district about $150,000 per year. Moving more of the students' grade notification online comes in at about a $25,000 in savings per year.

And new bus routing software, which became highly controversial when parents of students on eliminated routes complained, has saved about $200,000 per year.

“It's all about long-range financial planning and making good, well thought out decisions early on,” McClain said. “I think that is what the district is doing.”

The two bonds the district had refinanced were issue in 1998 and 2006. The new credit rating, McClain said, validates the moves made to reduce the district's budget.

“It's a nice, objective indicator from an independent source that we're well on our way to financial health,” he said.