Summary: Cedar Park, Texas; General Obligation

S&P Global Ratings assigned its 'AA+' rating to the City of Cedar Park, Texas' $9.4 million general obligation (GO) refunding bonds, series 2021. The outlook is stable. Including this issuance, the city will have $218.5 million of net direct debt outstanding. The bonds are secured by a limited ad valorem tax, levied on all taxable property within the city. Despite state statutory tax-rate limitations, we do not differentiate between the city's limited-tax debt and its general creditworthiness, since the ad valorem tax is not derived from a measurably narrower tax base and there are no limitations on the fungibility of resources, which supports our view of the city's overall ability and willingness to pay debt service. State statutes limit the

...S&P Global Ratings assigned its '##+' rating to the City of Cedar Park, Texas' $9.4 million general obligation (GO) refunding bonds, series 2021. The outlook is stable. Including this issuance, the city will have $218.5 million of net direct debt outstanding. The bonds are secured by a limited ad valorem tax, levied on all taxable property within the city. Despite state statutory tax-rate limitations, we do not differentiate between the city's limited-tax debt and its general creditworthiness, since the ad valorem tax is not derived from a measurably narrower tax base and there are no limitations on the fungibility of resources, which supports our view of the city's overall ability and willingness to pay debt service. State statutes limit the ad valorem tax rate for home rule cities to $2.50 per $100 of taxable assessed valuation (AV) for all city purposes. The Texas attorney general will permit the allocation of $1.50 of the $2.50 maximum tax rate for ad valorem tax debt service. In fiscal...

Summary