Moody's Affirms A1 Rating for Johnson/Miami Counties Unified School District 230

Strategic Insights -

Johnson/Miami Counties Unified School District 230 in Kansas has maintained its A1 issuer and general obligation unlimited tax (GOULT) ratings, according to Moody's Investors Service. The district's strong enrollment growth and above-average economic metrics are key factors in its financial stability. Moody's has also assigned a stable outlook to the district and an A1 rating to the district's General Obligation Refunding and Improvement Bonds, Series 2025, which amount to approximately $65.3 million.

Key Takeaways:

  • Johnson/Miami Counties Unified School District 230 has maintained its A1 issuer and GOULT ratings, affirming the district's financial stability.
  • The district's consistent, strong enrollment growth is a key factor in its financial stability, coupled with above-average economic metrics.
  • The district's financial profile lags A1 peers, with reserves of almost 18% as of fiscal 2024, but projected surpluses are expected to increase operating fund reserves in fiscal 2025.
  • Leverage metrics are slightly elevated, but manageable due to no additional near-term issuance plans.
  • The district's financial reporting is weak, as the cash-based audit does not comply with US accounting principles, does not disclose non-cash assets and liabilities, or capital asset values and depreciation.

Statistics:

  • The district has an A1 issuer rating.
  • The district's financial reserves are expected to increase in fiscal 2025 due to projected surpluses.
  • The district has an operating fund balance ratio of 25% projected for fiscal 2025.
  • The district has a long-term liability ratio of 250% and a fixed costs ratio of 20%.
  • The district has a current enrollment of about 5,920 students.
  • The district's GOULT debt outstanding is approximately $259.8 million.
  • The NO. 1 of district sponsored virtual school students attend.

Sources:

  • Moody's Investors Service
  • US K-12 Public School Districts methodology published in July 2024, available at https://ratings.moodys.com/rmc-documents/425431.
  • Moody's Rating Methodologies page, https://ratings.moodys.com.