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MTSD's Credit Shows Maximum Conservatism & Stability


  • Aaa is Moody’s highest rating, indicating MTSD is an excellent credit risk.

  • MTSD credit has been Aaa rated for 11 years in a row (since 2010).

  • Only 3 of 421 school districts in Wisconsin hold this highest rating.

  • Aaa indicates strong historical financial stability and conservatism.

  • Strong credit saves taxpayers money on referendums and leaves more dollars available for operations on working capital loans.

Example 1: Working Capital Loan

MTSD borrows money annually to cover cash flow shortages resulting from the timing of tax payments from the State of Wisconsin. MTSD uses cash reserves plus short-term borrowing to fund operations until the bulk of tax payments are deposited in spring.

A bond rating lower than Aaa results in higher interest costs, leaving fewer dollars available to fund operations.

Example 2: Referendum Borrowings

As of the May 4, 2020, Board of Education Meeting, the Referendum Financing Plan was:

· $40.7 million at 2.90% on 6/20/2020 (audited financials state 2.00-3.00%), for 20 years.

· $15.0 million at 2.50% on 6/1/2021, for 10 years.

A bond rating lower than Aaa results in higher interest costs and a higher tax burden to property owners.

MTSD Release

Moody’s noted the following strengths in its ratings rationale for MTSD: (1) strong management team with multi-year budget forecasting plans, (2) the district’s commitment to retaining current fund balance levels, (3) demonstrated ability to outperform budgeted projections, (4) moderate debt and pension burden, and (5) a strong local tax base.

For details on Moody’s rating methodology, please see Moody's

US K-12 Public School Districts Methodology: Scorecard User Guide

Moodys School District Methodology
Download PDF • 6.33MB

MTSD / Audited Financials

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