Standard&Poor's Ratings Services assigned its 'AA+' rating, and stable outlook, to Austin, Texas' series 2005 public property finance contractual obligations, series 2005 public improvement and refunding bonds, and series 2005 certificates of obligation. The rating reflects the city's: Strong and diverse economic base, anchored by state government and higher education; Significant high-tech manufacturing industry and expanding service sector; Strong financial management and position despite recent budget shortfalls in sales tax revenues; Improved revenue flexibility, which management has 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. The city's recent softening in assessed value (AV) due to a decrease
