The 'AA+' rating on Austin, Texas' public improvement bonds is based on the city's full faith and credit pledge. The 'AA+' rating on Austin's certificates of obligation and public property contractual obligations is based on the city's limited-tax pledge. The ratings reflect the city's: Strong and diverse economic base, which continues to experience rapid tax base growth, anchored by state government and higher education; Continued expansion of Austin's high-technology manufacturing industry and an expanding service sector; Solid financial performance and position, as well as a decreasing general fund reliance on transfers from the utility enterprise funds; Improved financial flexibility achieved through an increase in capital expenditures funded through operating revenues; and Moderate and decreasing overall debt levels coupled with a
