Standard&Poor's Ratings Services assigned its 'AA+' standard long-term rating, and stable outlook, to Austin, Texas' series 2006 public property finance contractual obligations, series 2006 public improvement and refunding bonds, and series 2006 certificates of obligation and affirmed its 'AA+' standard long-term rating and Standard&Poor's underlying rating (SPUR), with a stable outlook, on the city's preexisting GO debt. The ratings reflect 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 performance and position with institutionalized controls that govern the use of general fund reserves; Improved revenue flexibility, which management has achieved through an increase in capital expenditures funded with operating revenues; and
