With student success and fiscal responsibility always in mind when planning its next steps, and after years of mindful progression, Laredo College’s bond rating recently reached AA rating. The news comes in time for the 80th anniversary of the college, a milestone celebration inherently tied to years of the college’s stewardship.
“Laredo College belongs to this community,” LC Vice President of Finance and Administration Cesar Vela said. “The resources entrusted to us come from our students, taxpayers, the State of Texas and other public and private sources. We have a responsibility to manage those resources carefully while making sure that we continue fulfilling our educational mission.”
According to Vela, a bond rating is essentially an independent assessment of an institution’s financial strength and its ability to meet its financial obligations. Rating agencies look at several factors, including financial performance, available reserves and liquidity, debt levels, revenue stability, enrollment trends, management practices and the overall economic environment.
In simple terms, a bond rating can be described as a credit score but institutions like LC face far more comprehensive analysis. As institutions of higher education operate with their surrounding community, local, state and federal government bodies, a strong AA rating describes Laredo College as a responsible institution with a strong capacity to meet financial commitments.
The AA rating’s significance goes beyond an achievement; it is powerful statement on LC’s years of maintaining balance operations, strengthening its reserves and cash position, carefully managing expenditures and planning for long-term obligations. Vela said that he and his team are deliberate on how they approach capital projects and deferred maintenance, opting for long-term planning about addressing facilities, infrastructure needs, financial risks and beyond.
Through careful planning, the college is in a better position to respond to unexpected challenges and to make strategic investments when opportunities arise, he said. In addition to the facilities master plan’s guidance to improvements throughout both the Ft. McIntosh and South campuses, Laredo College has also benefitted from its long-term planning in program offerings, equipment acquisitions and other student, staff and faculty improvements.
Responsible stewardship begins with leadership that takes into consideration the needs and desires of the institution.
“Laredo College President Dr. Minita Ramírez and the Board of Trustees play a crucial role in responsible decision-making, but the AA rating is a shared accomplishment between them and the department leaders who teach and train the new generations of LC students,” Vela added.
Both the AA rating and continued fiscal responsibility pave the way for greater investor confidence and potentially more favorable borrowing terms when the college issues debt. This bond rating is also a catalyst for the development or expansion of new programs that meet industry demand as the college continues to monitor the local, state and national career markets.
Through Vela and the Finance Department’s guidance and efforts, Laredo College sits atop a reliable foundation built on fiscal responsibility, proper management, long-term planning and experienced decision-makers. Ultimately, the decisions of today are made to ensure financial sustainability for the students and taxpayers of tomorrow.
“The AA rating is something we should be proud of, but it is also something we have to continue earning,” Vela concluded. “Our goal is to maintain that financial strength while ensuring that every financial decision ultimately supports the mission of Laredo College and the students and community we serve.”