... demonstrated an ability and willingness to adjust spending levels to counter revenue limitations and weakness and to maintain satisfactory reserves. This perceived cushion of expenditure flexibility will be tested over the near term given the combination of increasing pension spending, a charter property tax limitation and current energy sector weakness that is pressuring operations. Houston's overall, long-term economic prospects continue to be positive. Economic Resource Base: Houston features a large, diverse economy that is still exposed to the energy sector. Expansion of the healthcare, port and petrochemical industries over the past several decades has reduced the historically strong reliance on the energy exploration sector. Population growth continues, and Fitch Ratings sees the housing market as moderately overvalued due to notable price appreciation over the past few years. Revenue Framework: 'aa' factor assessment. Houston is reliant...
