The 'AA+' rating on Austin, Texas' public improvement refunding bonds is based on the city's full faith and credit pledge. The rating reflects the city's: Strong and diverse economic base, which continues to experience rapid tax base growth, anchored by state government and higher education; Significant high-technology manufacturing industry and an expanding service sector; Solid financial performance and position and a decreasing general fund reliance on transfers from the utility enterprise funds; Improved financial flexibility, which was achieved through an increase in capital expenditures funded through operating revenues; and Moderate and decreasing overall debt levels, coupled with a manageable capital improvement plan and rapid debt amortization. Austin, the state capital, is in south-central Texas. State and local government, including the
