The long-term rating reflects the Canutillo Independent School District’s (the District) strong population and property value growth, sound reserves, and depth of management. These strengths are offset by an increasing debt burden, with below average amortization; stagnant revenues under the State of Texas’ (the State) school funding regime; and a competitive education market with open enrollment drawing students to neighboring districts.
Proceeds of the District’s Unlimited Tax Refunding Bonds, Series 2026 (the 2026 Bonds) will finance the construction of school facilities, refinance certain outstanding Bonds of the District, and fund the costs of issuance. The 2026 Bonds are payable from a direct and continuing pledge of ad valorem taxes levied on all taxable property within the District, without limitation as to rate or amount. The Bonds are expected to be guaranteed by the State’s Permanent School Fund (PSF) guarantee program for the full and timely payment of…
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