Proceeds will be used to refund certain outstanding bonds for interest cost savings and to fund road, fire facility, park, recreation and community center projects. The bonds are scheduled to sell via negotiation the week of
In addition, Fitch affirms the 'AA' rating on the following outstanding limited tax bonds:
The Rating Outlook is Stable.
The bonds and outstanding bonds are secured by an ad valorem tax levied against all taxable property within the city of
The outstanding COs are additionally secured by a limited, de minimus pledge of surplus revenues of the city's waterworks and sewer system, not to exceed
The outstanding pass-through bonds are additionally secured and primarily payable from payments received by the city pursuant to a pass-through toll agreement between the city and the
KEY RATING DRIVERS
HISTORICALLY STABLE ECONOMY: The local economy is anchored by
SOLID FINANCIAL PROFILE: The city maintains sound reserves reflecting conservative budgeting and prudent cost management. Revenue trends reflect very little volatility, but the city remains vulnerable to sales tax exposure.
SIGNIFICANT BUT AFFORDABLE DEBT: Overall debt is above-average in relation to market value, but affordable in relation to governmental spending.
FEDERAL MILITARY SPENDING: The city's substantial economic dependence on
MILITARY-RELIANT ECONOMY ANCHORED BY
Troop levels at the base tend to fluctuate as a result of the continuous deployments, but the impact to
Although the economy will likely always remain heavily dependent on
AVERAGE SOCIOECONOMIC PROFILE
The unemployment rate in the city typically is marginally higher than the state but below the U.S. average given the impact of ongoing federal military funding. City unemployment for
City residents are less affluent than average, with per capita money income and median household income at 72% and 85% of the national average, respectively; however, the region's cost of living is relatively low. Per capita market value is also low at
GROWTH IN TAXPAYER BASE CONTINUING
The city's total estimated loss in property tax revenue related to these exemptions is
SOUND RESERVES AND LIQUIDITY MAINTAINED
The city has prudently maintained a solid fiscal cushion and balanced operating profile while continuing to pay-go finance capital outlays. The city's fiscal 2013 deficit of
Aggregate debt ratios, inclusive of overlapping issuers, are moderate at about
Amortization is moderate at 46% of principal retired in 10 years. The city's near term capital needs are modest, but Fitch anticipates the overall debt burden to remain elevated given regional growth expectations.
PENSION/OPEB LIABILITIES NOT A CREDIT PRESSURE
The city's required contributions to its two pension plans are paid in full each year. The city's major pension plan - the Texas Municipal Retirement System (TMRS) - is a statewide agent multiple-employer system and had a strong funded position of 91.4% as of the
Other post-employment benefits (OPEB) costs are paid as incurred and while the city has not funded any of its
Additional information is available at 'www.fitchratings.com'.
In addition to the sources of information identified in Fitch's Tax-Supported Rating Criteria, this action was additionally informed by information from Creditscope,
--'Tax-Supported Rating Criteria' (
--'U.S. Local Government Tax-Supported Rating Criteria' (
Tax-Supported Rating Criteria
U.S. Local Government Tax-Supported Rating Criteria
Source: Fitch Ratings
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