The 'AA+' rating on Austin, Texas' $69.25 million series 2003 public improvement refunding bonds reflects the city's: Strong and diverse economic base, which has exhibited rapid tax base growth despite the recent economic contraction, that is anchored by state government and higher education; Significant high-tech manufacturing industry and an expanding service sector; Improved revenue flexibility, which is 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: Eroded financial performance due to sales tax revenue shortfalls, Structurally unbalanced fiscal 2003 budget, and Increased general fund reliance on transfers from the electric utility enterprise fund. The
