LOS ANGELES — Moody's Investors Service upgraded Laguna Beach Unified School District's, Calif. general obligation bonds to Aaa from Aa1 affecting $27.3 million in debt.

The upgrade completes a rating review began by Moody's on Oct. 23.

Moody's cited anticipated moderate growth in the school district's large and stable tax base as well as an exceptionally strong financial position evidenced by the districts growth in reserves over the past five years.

The Orange County district has two elementary schools, one middle school and one high school.

The district's strong socioeconomic profile, exceptionally healthy financial position, basic aid status, low debt burden and strong management were also cited for its Aaa rating. The rating also reflects the security of an unlimited property tax pledge of all taxable property within the district boundaries, according to Moody's.

The bonds are secured by the levy of ad valorem taxes, unlimited as to rate or amount, upon all taxable property within the district. The portion of the levy restricted for debt service is collected, held and transferred directly to the paying agent by the county on behalf of the district.

Basic aid or "excess tax" districts fund their revenue limit entirely through property taxes and receive no general purpose state aid. They also retain any excess property taxes within their district. The state's basic aid school districts are generally more affluent than other districts.

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