Rating Summary
The rating continues to reflect the unique security features available to California school district general obligation (G.O.) bondholders (detailed below). The Sacramento City School District’s (“SCUSD’s” or “the District’s”) tax base – upon which ad valorem taxes pledged to the payment of debt service are levied – continues to grow and diversify, although the rate of increase in taxable assessed valuation has slowed in recent years. Population growth in the tax base, which includes portions of the City of Sacramento, Sacramento County, and the cities of Elk Grove and Rancho Cordova, has outpaced the State.
Offsetting these strengths are certain somewhat weak demographic indicators, including personal income per capita that is only about 81% of the State average, and a poverty rate slightly above that of the State.
District G.O. Bonds are secured by a statutory lien on ad valorem taxes assessed on all taxable property within the District (“pledged revenues”)…