ISD 728 Bond Rating Increases to One of the Best in State for School Districts

Fiscal responsibility and “excellent” money management have each led to recognition for the ISD 728 Business Office and Finance teams, including state and national accolades. 

But the news earlier this year that ISD 728’s hard work had paid off exactly where staff and leadership had hoped - right in taxpayers’ bank accounts - was the biggest reward of all. 

ISD 728 received word from Ehler’s and Moody’s that its Investor Rating had been upgraded from Aa2 to an Aa1 level - literally saving taxpayers $3.2 million on recent bond refinancing and bidding - something done regularly by Districts to decrease interest amounts. 

“The last seven-plus years I’ve been on this board, we continue to get a better rating on a regular basis. That means lower interest rates, and that means tax savings for our taxpayers,” said Board Member Joel Nelson. “I appreciate what our District is doing.” 

Only five districts in Minnesota have a higher rating than Aa2 and only three have a higher rating than Aa1. The district’s growing student enrollment, strong available reserves and liquidity, ISD 728’s location in the metro area and ISD 728’s size as one of the largest districts in the state contributed to the increased rating, as well as the District’s management of debt throughout the major projects done in the wake of the 2019 referendum and bond. 

“Bonding companies see what we are doing and feel good about working with us, and we want that to be the case in the future,” said Andy Almos, ISD 728 Director of Business Services. “Now it’s up to us to continue to be good stewards and keep that rating, which in turns continues our savings in the long run.”