The rating on Austin, Texas' bonds reflects: * Local economy diversified by a large government, * Growing high technology manufacturing and service sector presence, * Strong growth of the significant $20 billion tax base, and * Sound financial operations. Mitigating factors include: * Growth pressures resulting in high debt, * Significant future debt needs, * Increased property tax rate despite strong property tax base growth and, * Strong growth in sales tax revenue. Austin is the state capital and is centrally located in southeastern Texas. State and local government remains a strong employment sector. Growth in services, particularly high technology manufacturing and service sectors, has led to significant employment and tax base growth. The high technology industry expansion is anchored
