The 'AA+' rating on Austin, Texas' public improvement and refunding bonds, certificates of obligation, and public property finance contract obligations reflects the city's: Strong and diverse economic base, anchored by state government and higher education; Significant high-tech manufacturing industry and an expanding service sector; Sound general fund reserves; 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 budget for fiscal 2003 and an increased general fund reliance on transfers from the electric utility enterprise fund, and Declining fiscal 2004 property tax base. The city's full faith and credit pledge secures the bonds. The city's
