Standard&Poor's Ratings Services assigned its 'AA+' rating, and stable outlook, to Austin, Texas' series 2005 public improvement refunding bonds. The rating reflects the city's: Strong and diverse economic base, anchored by state government and higher education; Significant high-tech manufacturing industry, as well as an expanding service sector; Strong financial management and position despite recent budget shortfalls in sales tax revenues; Improved financial flexibility 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: Significant general fund reliance on transfers from utility enterprise funds; and Softening in assessed value (AV), coupled with a decrease
