(December 16, 2025) CHAMPAIGN – Champaign Unit 4 Schools is pleased to announce that Moody’s Ratings has upgraded the District’s issuer and General Obligation Unlimited Tax (GOULT) rating to Aa1, reflecting a strong vote of confidence in the District’s long-term financial stability and stewardship of taxpayer dollars. Moody’s also assigned an Aa1 rating to the District’s upcoming 2026 General Obligation Refunding School Bonds, which carry a proposed par amount of $42.5 million. This upgrade highlights the District’s commitment to responsible budgeting, strategic planning, and delivering meaningful cost savings to Unit 4 residents.
“The rating upgrade was an important part of a financial strategy to refund a portion of the outstanding Series 2017 bonds the District issued for capital improvements identified in the 2016 referendum,” said Cheif Financial Officer Linda Matkowski. “Being able to use the rating upgrade to improve the District’s chances of increasing the amount of debt service savings for taxpayers was critical. The refunding bonds were sold in early December and will close in early January 2026. The refunding was accomplished with a competitive bond sale that saw seven large institutional firms bidding for the bonds. The lowest interest rate received was 2.659%. The interest rate was low enough to lock in approximately $3 million in debt service savings for taxpayers.”
According to Moody’s, the upgrade is driven by Champaign Unit 4’s expanding tax and revenue base, growing student enrollment, and stable financial position. The District’s strong local economy continues to support increasing property values and steady revenue growth. Preliminary results for fiscal year 2025 project a modest operating surplus, with available fund balances expected to reach approximately 43% of operating revenue. This fiscal discipline, combined with quick debt repayment schedules and strategic refinancing, continues to reduce long-term costs for taxpayers while ensuring the District can meet current and future capital needs.
The District maintains approximately 10,000 students across Champaign, Savoy, and Bondville. With about $230 million in outstanding debt following the upcoming bond sale, Unit 4 remains committed to managing its obligations efficiently and transparently. Moody’s assigned the District a stable outlook, recognizing the likelihood that Unit 4 Schools will continue to maintain a strong financial position and uphold its commitment to responsible use of local tax dollars.
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