Credit: Tom Sofield/LevittownNow.com
The Bristol Township School District received some not-so-great news from Moody’s Investors Service this week.
Moody’s Investors Service downgraded the Bristol Township School District’s bond rating to AAA from A.
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“The A3 underlying rating reflects the district’s continued structural imbalance resulting in narrow reserve levels and limited financial flexibility. The rating also reflects the district’s large tax base, average socioeconomic indicators, and above average debt burden,” according to a press release from Moody’s.
In their outlook for the district, Moody’s experts noted “significant challenges” to administration looking to regain structural balance, avoid further draws on fund balance and restore reserves to adequate levels.
Based on the most recent budget meeting, it appears the district will not be able to avoid a withdraw from fund balance. The district is looking to borrow money from the fund balance and raise taxes to fill a $4.7 million gap.
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Moody’s said continuation of the structural imbalance, a further deterioration of reserves and significant decline in tax base would continue to harm Bristol Township.
The district currently has $120 million in bonds out for the three elementary school construction project. District business manager John Steffy said recently a new of up to $10 million might have to be taken out to pay for roof replacement at Harry S. Truman High School and other projects.
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District officials have said in recent months that the cash-strapped school system’s financial situation is beginning to look brighter.
