Van Meter Community School District, IA GO Outlook Rating Revised To Negative On Available Fund Balance Decline

CHICAGO (S&P Global Ratings) Dec. 7, 2018--S&P Global Ratings revised its outlook to negative from stable on Van Meter Community School District, Iowa's general obligation (GO) bonds, and affirmed its 'AA-' long-term rating on the bonds. "We revised the outlook due to the recent decline in available fund balance," said S&P Global Ratings credit analyst Daniel Hughes. "We believe the decline has materially weakened the district's credit profile and makes it susceptible to unexpected expenditures and emergencies if available fund balance continues declining, or remains at nominally thin levels." The district's available fund balance declined from $2 million, or 36% of general fund expenditures at the end of fiscal 2013 to an estimated $314,000, or 4% of general fund expenditures

...CHICAGO (S&P Global Ratings) Dec. 7, 2018--S&P Global Ratings revised its outlook to negative from stable on Van Meter Community School District, Iowa's general obligation (GO) bonds, and affirmed its '##-' long-term rating on the bonds. "We revised the outlook due to the recent decline in available fund balance," said S&P Global Ratings credit analyst Daniel Hughes. "We believe the decline has materially weakened the district's credit profile and makes it susceptible to unexpected expenditures and emergencies if available fund balance continues declining, or remains at nominally thin levels." The district's available fund balance declined from $2 million, or 36% of general fund expenditures at the end of fiscal 2013 to an estimated $314,000, or 4% of general fund expenditures at the end of fiscal 2018. While reserves have declined significantly, we recognize the district has the ability to rebuild reserves through its cash reserve levy, and management intends to use this levy over the...

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