The rating upgrade on Austin, Texas' bonds reflects: A strong local economic base that continues to experience rapid tax base and population growth, anchored by the state government; The city administration's ability to manage capital and service requirements attributable to strong economic growth over the past five years through conservative fiscal management, and improved financial flexibility achieved through the increase of capital investment paid for from operations. Another sign of mitigated growth pressures is the trend of a declining property tax rate since 1998; Continued rapid growth in Austin's high-technology manufacturing industry, an expanding service sector, and the anchoring presence of state government; and Combined strong property tax base growth with strong retail sales resulting in strong general fund operations
