Horseshoe Bay, Texas; General Obligation

S&P Global Ratings assigned its 'AA+' rating and stable outlook to Horseshoe Bay, Texas' series 2020 general obligation (GO) refunding bonds. Annual ad valorem taxes, levied within the limits prescribed by law and against all taxable property in the city, secure the series 2020 GO bonds. The maximum allowable ad valorem tax rate for Texas cities is $2.50 per $100 of assessed value (AV) for all purposes with the dedicated debt-service portion limited to $1.50. The city's levy is well below the maximum at 27 cents per $100 of AV, including 3.84 cents for debt service. We do not differentiate between the city's limited-tax GO debt and general creditworthiness. We think that the city's ability to meet debt service and

...S&P Global Ratings assigned its '##+' rating and stable outlook to Horseshoe Bay, Texas' series 2020 general obligation (GO) refunding bonds. Annual ad valorem taxes, levied within the limits prescribed by law and against all taxable property in the city, secure the series 2020 GO bonds. The maximum allowable ad valorem tax rate for Texas cities is $2.50 per $100 of assessed value (AV) for all purposes with the dedicated debt-service portion limited to $1.50. The city's levy is well below the maximum at 27 cents per $100 of AV, including 3.84 cents for debt service. We do not differentiate between the city's limited-tax GO debt and general creditworthiness. We think that the city's ability to meet debt service and continue to operate successfully has a strong link to its general creditworthiness and that there are no significant resource-fungibility limitations. Officials will use series 2020 bond proceeds to refinance portions of series 2011 combination tax and revenue certificates of...

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