The rating on Austin, Texas' bonds reflects: A subordinate lien on net revenues of the water and wastewater system, junior to approximately $2 billion in combined utility system obligations; Liberal legal provisions, including a permissive additional bonds test, which is a concern given the large capital plan; The acquisition of a 100-year water supply through an agreement signed in October 1999 with the Lower Colorado River Authority (LCRA); Solid projected debt service coverage of the combined lien obligations, the series 2000 bonds, and the separate lien obligations of 1.57x in 2001 and 1.38x coverage of all obligations; and A sizable capital plan of approximately $607 million over the next five years, of which approximately 70%-75% is expected to be financed
