The 'AA+' rating on Austin, Texas' public improvement refunding bonds reflects the city's: Strong and diverse economic base, which has exhibited rapid tax base growth despite the recent economic contraction, that is anchored by state government and higher education; Significant high-tech manufacturing industry and an expanding service sector; Improved revenue flexibility, which is 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. Offsetting credit factors include the city's: Eroded financial performance due to sales tax revenue shortfalls, Structurally unbalanced fiscal 2003 budget, and Increased general fund reliance on transfers from the electric utility enterprise fund. The city's full faith and
