The rating on Colorado Educational and Cultural Facilities Authority's bonds, issued for Core Knowledge Charter School, 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 demonstrated by a growing enrollment and waiting lists for all grades; Positive financial performance and a covenant to maintain a 10% working capital reserve; and Good project essentiality with minimal nonappropriation risk. The bonds are secured by charter school lease payments, subject to annual appropriation. Offsetting factors include: The relatively short history of charter
