The Huntington School District’s financial position is “healthy” according to a report recently released by Moody’s Investors Service. The district has an “exceptionally low” debt burden and a “very strong” tax base.
District officials and Huntington School Board members have been unwavering in their pursuit of a conservative budgeting philosophy, striving to adopt realistic annual expenditure and revenue projections and seeking efficiencies wherever they can be found.
“Huntington UFSD has a very strong credit position and its Aa1 rating exceeds the median rating of Aa3 for US school districts,” according to Moody’s. “The notable credit factors include a very strong wealth and income profile, a substantial tax base and a healthy financial position. The district’s credit position also reflects an exceptionally light debt burden and an average pension liability.”
The “annual comment” from Moody’s is available to lenders who are interested in purchasing the district’s notes. Huntington UFSD has one of the lowest debt burdens of any Long Island district.
“Overall, the financial position of the district is healthy and is roughly consistent with its Aa1 rating,” according to Moody’s. “Huntington UFSD’s cash balance as a percent of operating revenues (30.9 percent) is on par with the US median and it remained stable between 2015-2019.
Moody’s also noted that “the debt burden of the district is exceptionally low and is favorable in relation to its Aa1 rating. The net direct debt to full valuable (zero percent) is significantly below the US media and remained flat from 2015-2019.”
Moody’s said the “district’s economy and tax base are very strong overall and are aligned with its assigned rating of Aa1. The median family income is 177.3 percent of the US median level. Full value per capita ($152,961) is much stronger than the US median and rose from 2014 to 2018. Additionally, Huntington UFSD’s total full value per capita ($160,103) is markedly higher than the U.S. median and it increased from 2015 to 2019. Lastly, the total full value of the district’s tax base ($5.6 billion) exceeds other Moody’s rated school districts nationwide.”
Huntington UFSD’s $133,488,443 spending plan for the 2019/20 school year passed, 1,064-259. A proposition seeking release of $3.846 million from the Building Improvement Fund for various renovation and repair projects also sailed through, 1,125-189.