Lincoln Way District 210 Achieves Highest Bond Rating in History

Lincoln Way Community High School District 210 has reached its highest-ever bond rating of AA3 from Moody’s and A+ from Standard & Poor’s, culminating a remarkable recovery from financial challenges that began over a decade ago.

The upgraded rating helped the district secure favorable terms on recent bond sales, including $30.4 million in life safety bonds for HVAC improvements at Lincoln Way Central and East, and $4.5 million in debt certificates for bus purchases.

“We’re back up to double A3 in terms of our rating,” said district Finance Director Mike Kelly during Tuesday’s school board meeting. “That certainly helped with our bond sales that we saw here just recently.”

The district’s bond rating history shows a dramatic decline followed by a steady five-rating climb back to the current high-water mark. The recovery took several years of disciplined financial management and represents a significant achievement for the district’s fiscal health.

Several factors contributed to the rating upgrade, according to discussions with Standard & Poor’s rating officials. The district benefits from a sizable tax base and high reliance on local property taxes rather than state or federal funding. State funding comprises only a small percentage of the district’s revenue, while federal funding is even smaller.

“The fact that we can rely on our local property taxes was advantageous for us,” Kelly explained.

The district has also demonstrated consistent operating surpluses over several years and reached its revenue target of maintaining a 33% operating fund balance. Improved budgetary practices implemented over the past 8-10 years have positioned the district favorably with rating agencies.

“Every year when our auditors come in now we’re within a couple hundred thousand dollars of our budget target and we’ve really improved in those areas,” Kelly said.

The recent bond sales attracted significant interest from investors. Nine firms bid on the life safety bonds, with Truest Securities winning as low bidder at 4.096%. The debt certificates drew fewer bidders due to the smaller amount but secured a favorable rate of 3.4889%.

District officials noted that comparable bond sales in neighboring areas were pricing at 4.25% to 4.5%, making Lincoln Way’s rates particularly attractive.

The life safety bond proceeds will fund major HVAC improvements at Lincoln Way Central and East, with construction planned for summers 2026 and 2027. The district is reestablishing its life safety fund (Fund 90) to transparently track these project expenses separately.

Design work for the HVAC projects is progressing, with bids expected to go out in September and board approval sought at the September meeting. The timeline allows for construction to begin during the summer 2026 break.

The debt certificate proceeds will fund the purchase of buses, allowing the district to own rather than lease its transportation fleet. This change is expected to provide long-term cost savings and allow the district to maintain buses longer than the previous 5-year lease terms.

Board President acknowledged the collaborative effort behind the rating improvement: “I want to thank the leadership of the board and then everyone who’s been involved so something to celebrate getting that better rating which led to a little bit better rates on these bond sales.”

The district’s financial recovery represents years of careful planning and disciplined spending. Previous board members and administrators, including former officials Steve Langert and Brad Kaufman, contributed to the turnaround effort alongside current leadership.

Superintendent Dr. Lawrence Ingely noted the significance of reaching this financial milestone while preparing for major infrastructure improvements. “It’s certainly been an adventure but we’re back up to double A3 in our rating,” he said.

The bond proceeds will be invested until needed for project expenses, providing additional return for taxpayers while maintaining fiscal responsibility.