Canyon City School District No. 131 received a Baa rating from Moody's Investors Service for a $35 million new issue that is scheduled to be competitively bid today.
The bond issue is relatively large for the school district, which includes the town of Nampa, about 20 miles west of Boise. Nampa has a population of 25,000. Proceeds from the general obligation debt will be used to build a high school and four elementary schools, and renovate another high school and six elementary schools.
In his rating report, Moody's analyst Jerry Caden said Nampa's "socioeconomic profile for a growing population is well below that of the state in general, reflective of a local economy that is centered primarily on lower wage paying agricultural and food processing employers."
The school district's budget was also hurt by higher teacher pay that followed a strike, but Caden said that the town's proximity to Boise gives it some stability. He noted that the district has no outstanding debt and that it has a five-year plan to strengthen financial operations and increase its tax base.
Bob Hildeman, the district's financial adviser from West One Bank in Boise, said the district has contacted four insurers and the bonds will probably be insured and receive a triple-A rating.
Voters passed the bond issue on March 22. The issue exhausts the district's debt authorization.
