Colorado Educational and Cultural Facilities Authority's charter school revenue bonds, issued for Core Knowledge Charter School, are secured by charter school lease payments subject to annual appropriation. The rating reflects: A strong and positive environment for charter schools in Colorado as demonstrated through a supportive legal framework and stable financial arrangements; A positive relationship between the school and its sponsor district, Douglas County School District No. Re-1; A successful renewal of the district's initial charter through 2002; Good demand, which is demonstrated by a growing enrollment and waiting lists for all grades; A positive financial performance and a covenant to maintain a 10% working capital reserve; and Good project essentiality with minimal nonappropriation risk. Offsetting factors include: The relatively short
