...S&P Global Ratings assigned its 'A' long-term rating to the City of Donna, Texas' series 2017 certificates of obligation. At the same time, S&P Global Ratings affirmed its 'A' rating on the city's general obligation (GO) debt outstanding. The outlook on all ratings is stable. The certificates are direct obligations of the city payable from a combination of an ad valorem tax levied annually, within the limits prescribed by law, against all taxable property in the city and a limited pledge of net revenues (not to exceed $1,000) of the city's waterworks and sewer system. The maximum allowable property tax rate in Texas is $2.50 per $100 of assessed value for all purposes, with the portion dedicated to debt service limited to $1.50. The city's levy is well below the maximum, at 88.00 cents, 13.97 cents of which is dedicated to debt service. We do not differentiate between the limited tax pledge and Donna's general obligation given the significant financial flexibility. In addition, despite...
