Annual Report of Local Debt Information
Fiscal Year Ended August 31, 2016
Pursuant to Local Government Code, Section 140.008
This report was posted on the District’s website on March 6, 2017.
Overview of Certain Financial/Bond Ratings
 Overview: Calallen Independent School District (the “District”) has been assigned the following
independent financial/bond ratings that indicate the relative strength of the District’s financial and debt
management:

School Financial Integrity Rating System of Texas (“FIRST”): Pursuant to Subchapter D, Chapter
39 of the Texas Education Code, the State annually deploys a financial accountability rating system to
distinguish the level of a school district’s financial performance based upon certain uniform criteria.


Based on data for year 2014/15, the District was assigned a 2015/16 FIRST Rating of
“Superior” and the District’s score was 98 out of a possible 100 points.
Credit Ratings: The District also maintains independent ratings from certain nationally recognized
credit rating agencies, such as Moody’s Investors Service, S&P Global Ratings and Fitch Ratings, Inc.,
that evaluate the District’s financial strength and its ability to pay its existing bonds.

Moody’s Investors Service: Assigns a “Aa2” credit rating to the District, defined as “Judged to
be of high quality and are subject to very low credit risk.”

S&P Global Ratings: Assigns a “A+” credit rating to the District, defined as “Having a strong
capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects
of changes in circumstances and economic conditions than obligors in higher-rated categories.”

Fitch Ratings, Inc.: Assigns a “AA”(A) credit rating to the District, defined as “Very high quality.
A “AA” rating denotes expectations of very low default risk and very strong capacity for
payment of financial commitments.”
For comparison purposes, S&P Global Ratings assigns a credit rating of “AA” to the United States of
America.
(A)
On February 1, 2017, Fitch Ratings, Inc. upgraded the underlying credit rating of the District from “AA-” to “AA”.
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Overview of State Funding System
 State Funding System – Where Do the District’s Revenues Come From: Calallen ISD is legally
required to operate pursuant to the requirements of the Texas Education Code. In particular, the Texas
Education Code determines the District’s ability to generate local tax revenues for maintenance &
operation purposes and for the repayment of voter-approved bonds. In this regard, the District annually
sets two (2) separate tax rates that are levied upon its certified taxable value that is independently
determined by the Nueces County Appraisal District:

Maintenance & Operations (“M&O”) Tax Rate: To provide funds for the “day to day” operational
expenses of the District, including instructional programs, teacher salaries, instructional supplies,
security, student transportation, extracurricular activities, utilities, facility infrastructure/maintenance, etc.


The District’s annual funds for maintenance &
operation purposes primarily consist of a combination
of State funding and local M&O taxes. In general, the
dollar amount of each component is determined by the
District’s “Equalized Wealth per Student” (i.e. taxable
value / weighted average daily attendance) as set by the
State. For year 2015/16, the District’s sources for
M&O revenues are summarized to the right.
M&O Revenue by Source – Year 2015/16
Federal
(0.9%)
State
(50.0%)
Local
(49.1%)
On September 11, 2010, voters approved a tax ratification
election to increase the District’s M&O tax rate to $1.17.
Prior to such ratification, the District was limited to a
$1.04 tax rate for maintenance and operations.
Source: District’s Audited Financial Statements and District records.
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Overview of State Funding System

Interest & Sinking Fund (“I&S”) Tax Rate: To provide funds to pay the principal and interest on
bonds approved by a majority of voters for capital improvements. The following summarizes the
District’s bond programs approved by voters over the last 15 years:
District’s Historical Bond Elections Approved By Voters
Election Date
Purpose
Election Amount
November 6, 2007
School Building & Refunding
$44,115,000
Total Dollar Amount Of Authorized But Unissued Bonds - As of August 31, 2016:

Dollar Amount Of
Bonds Remaining
To Be Issued
$0
$0
As of fiscal year ended August 31, 2016, the District had $338,080 within its Capital Projects
Fund for projects currently in progress.
Source: Texas Bond Review Board, District’s Audited Financial Statements and District records.
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Historical Student Enrollment
5,000
4,500
Student Enrollment
4,000
 Over the last 5 years, the number of
students within the District has increased
by 191 or an increase of 4.96%.
3,850
3,954
4,000
3,986
4,012
4,041
2011/12
2012/13
2013/14
2014/15
2015/16
3,500
3,000
2,500
2,000
2010/11
Source: Texas Education Agency - PEIMS and District records.
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Historical Tax Rates
$2.00
 Over the last 5 years, the District’s total tax rate has increased by 7.7 cents.
Property Tax Rate Per $100 Valuation
$1.75
$1.50
$1.25
$1.29850
$1.32850
$1.35850
$1.35850
$1.35850
$1.37550
$0.12850
$0.15850
$0.18850
$0.18850
$0.18850
$0.20550
$1.17000
$1.17000
$1.17000
$1.17000
$1.17000
$1.17000
2010/11
2011/12
2012/13
2013/14
2014/15
2015/16
$1.00
$0.75
$0.50
$0.25
$0.00
Maintenance & Operations Tax Rate
Source: District’s Audited Financial Statements and District records.
Interest & Sinking Fund Tax Rate
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Total Property Taxes For Maintenance and Operations and
Voter-Approved Bonds – Year 2015/16
$4,000
$3,783
$3,500
Annual Property Taxes
$3,000
$2,407
$2,500
$2,000
$1,500
$1,032
$1,000
$500
$0
$100,000 Appraised Home Value
$200,000 Appraised Home Value
Note: Taxes are net of the $25,000 State-mandated residential homestead exemption.
$300,000 Appraised Home Value
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Summary of Property Tax Cost Per School Day –
For Various Appraised Home Values – Year 2015/16
$25.00
$21.01
 A homeowner with a $100,000 Appraised Home Value and 2 children
attending Calallen ISD paid approximately $2.87 of school property
taxes per child for each school day.
$20.00
Cost Per School Day
 In year 2015/16, a homeowner with a $100,000 Appraised Home Value
and 1 or no children attending Calallen ISD paid approximately $5.73
of school property taxes for each school day.
$15.00
$13.37
 This includes the cost of instructional programs, teacher salaries,
instructional supplies, security, student transportation, extracurricular
activities, facilities infrastructure/maintenance and bond payments.
$10.51
$10.00
$7.00
$6.69
$5.73
$5.25
$4.46
$5.00
$3.34
$2.87
$1.91
$1.43
$0.00
0-1 Child
$100,000 Appraised Home Value
2 Children
3 Children
$200,000 Appraised Home Value
Note: Taxes are net of the $25,000 State-mandated residential homestead exemption. Assumes a 180 school day year.
4 Children
$300,000 Appraised Home Value
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Composition of Total Assessed Valuation – Year 2015/16
 For year 2015/16, Single-Family Residential properties comprised 53.3% of the District’s
total assessed valuation and other property categories comprised 46.7%.
Business, Commercial,
Industrial, Utilities,
Other
(38.2%)
Oil, Gas & Minerals
(0.1%)
Vacant Lots, Acreage,
Farm & Ranch
Improvements
(6.1%)
Single-Family
Residential
(53.3%)
Multi-Family Residential
(2.4%)
Source: Nueces County Appraisal District.
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Unlimited Tax Debt Service By Series –
Existing Bonds Approved By Voters
$3,500,000
Annual Bond Payments
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
Unlimited Tax School Building Bonds, Series 2008
Unlimited Tax Refunding Bonds, Series 2010
Unlimited Tax Refunding Bonds, Series 2015
Unlimited Tax Refunding Bonds, Series 2016
2037/38
2036/37
2035/36
2034/35
2033/34
2032/33
2031/32
2030/31
2029/30
2028/29
2027/28
2026/27
2025/26
2024/25
2023/24
2022/23
2021/22
2020/21
2019/20
2018/19
2017/18
$0
2016/17
$500,000
Note: Debt service payments reflect payments from September 1 through August 31.
Source: District’s Audited Financial Statements and District records – As of August 31, 2016.
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Unlimited Tax Debt Service By Principal and Interest –
Existing Bonds Approved By Voters
$4,000,000
$3,500,000
Annual Bond Payments
$3,000,000
As of August 31, 2016
Principal
$
40,350,000
+ Interest
23,584,235
= Total
$ 63,934,235
$2,500,000
$2,000,000
$1,500,000
$1,000,000
Principal
2037/38
2036/37
2035/36
2034/35
2033/34
2032/33
2031/32
2030/31
2029/30
2028/29
2027/28
2026/27
2025/26
2024/25
2023/24
2022/23
2021/22
2020/21
2019/20
2018/19
2017/18
$0
2016/17
$500,000
Interest
Note: Debt service payments reflect payments from September 1 through August 31.
Source: District’s Audited Financial Statements and District records – As of August 31, 2016.
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Savings from District’s Recent Bond Refunding Programs to
Lower Interest Costs
 Calallen ISD has implemented 4 bond refunding programs to reduce the cost of voter-approved bonds –
Which have generated more than $6.0 million of savings for District taxpayers in recent years.
Summary of Interest Cost Savings – Bond Refunding Programs
Principal
Amount
Refunded
$
3,550,000
Total Savings
$
234,836
Issue
Unlimited Tax Refunding Bonds, Series 2010
Series Refunded
1994, 1998
Unlimited Tax Refunding Bonds, Series 2015
Unlimited Tax Refunding Bonds, Series 2016
2008
2008
8,700,000
8,885,000
1,481,233
1,982,906
Unlimited Tax Refunding Bonds, Series 2017
2008
9,200,000
2,336,083
Totals
Source: District records.
---
$
30,335,000
$
6,035,058
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Summary of Unlimited Tax Debt Outstanding By Series –
As of Fiscal Year Ended August 31, 2016
No.
1
Outstanding Outstanding
Total
Original
Debt Service
Principal
Outstanding
Principal
Outstanding
Per Capita
Debt Service Per Capita
Amount
Principal
$42,837,438.95 $22,660,000.00 $38,161,885.00 $1,064.25
$1,792.31
Issue Description
Unlimited Tax School Building Bonds,
Series 2008
Purpose
Capital Improvements
2
Unlimited Tax Refunding Bonds,
Series 2010
Refunding at a lower
interest rate, etc.
$3,549,994.60
3
Unlimited Tax Refunding Bonds,
Series 2015
Refunding at a lower
interest rate, etc.
4
Unlimited Tax Refunding Bonds,
Series 2016
Refunding at a lower
interest rate, etc.
$820,000.00
Final
Maturity
Date
02/15/2038
Total
Proceeds
Spent
Received
Proceeds
$43,872,297.93 $43,534,217.93
Unspent
Proceeds
$338,080.00
$856,750.00
$38.51
$40.24
02/15/2019
$3,665,163.70
$3,665,163.70
$0.00
$8,540,000.00
$8,420,000.00 $11,583,400.00
$395.45
$544.03
02/15/2029
$9,879,882.13
$9,879,882.13
$0.00
$8,720,000.00
$8,450,000.00 $13,332,200.00
$396.86
$626.16
02/15/2033
$9,938,147.88
$9,938,147.88
$0.00
Source: District’s Audited Financial Statements, 2010 U.S. Census (Interpolated) and District records. Per capita figures are based upon an estimated population of 21,292.
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Summary of Maintenance Tax Debt Outstanding –
As of Fiscal Year Ended August 31, 2016
$600,000
No.
1
Issue Description
Maintenance Tax Notes,
Series 2013
Purpose
Maintenance &
Equipment
Original
Total
Outstanding Outstanding
Principal
Outstanding Outstanding
Principal
Debt Service
Amount
Principal
Debt Service Per Capita
Per Capita
$3,050,000.00 $1,880,000.00 $2,007,550.00
$88.30
$94.29
Final
Maturity
Date
08/15/2022
Total
Proceeds
Received
$3,064,454.30
Spent
Proceeds
$2,544,454.30
Unspent
Proceeds
$520,000.00
Annual Bond Payments
$500,000
$400,000
As of August 31, 2016
Principal
$
1,880,000
+ Interest
127,550
= Total
$
2,007,550
$300,000
$200,000
$100,000
$0
2016/17
2017/18
2018/19
Principal
2019/20
2020/21
2021/22
Interest
Note: Debt service payments reflect payments from September 1 through August 31. Payable from the District’s M&O tax rate.
Source: District’s Audited Financial Statements, 2010 U.S. Census (Interpolated) and District records. Per capita figures are based upon an estimated population of 21,292.
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Tax-Supported Debt Obligations At Fiscal Year End and
As a Percentage of Taxable Assessed Valuation
$90 Mil
4.12%
4.05%
$80 Mil
4.00%
3.74%
$70 Mil
3.50%
3.10%
2.82%
$60 Mil
$50 Mil
$45,684,416
$44,816,819
$46,629,337
$45,456,679
$44,000,000
3.00%
2.50%
$42,230,000
$40 Mil
2.00%
$30 Mil
1.50%
$20 Mil
$45,684,416
$44,816,819
$43,879,337
$42,991,679
$41,825,000
$40,350,000
$10 Mil
$0
1.00%
Bond Principal Per Taxable Assessed Valuation
Bond Principal Outstanding At Fiscal Year End
4.50%
4.18%
0.50%
$0
$0
2010/11
2011/12
$2,750,000
$2,465,000
$2,175,000
$1,880,000
2012/13
2013/14
2014/15
2015/16
M&O-Supported Debt
0.00%
I&S-Supported Debt
Source: District’s Audited Financial Statements, Nueces County Appraisal District and District records.
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Contact Information
 Main Office Contact Information:
Physical and Mailing Address:
4205 Wildcat Drive
Corpus Christi, Texas 78410
Phone: (361) 242-5600
Fax: (361) 242-5620
 For additional information regarding this report, please contact:
Ms. Edith George
Director of Finance
Phone: (361) 242-5600 Ext. 1005
Email: [email protected]
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