...S&P Global Ratings assigned its '##+' rating and stable outlook to Horseshoe Bay, Texas' series 2019 combination tax and revenue certificates of obligation and affirmed its '##+' rating, with a stable outlook, on the city's existing general obligation (GO) debt. The certificates are payable from an ad valorem tax levied on all taxable property in the city, within the limits prescribed by law, and a limited pledge not to exceed $1,000 of surplus water-and-wastewater-system revenue. We, however, rate the certificates based on the city's ad valorem pledge. Annual ad valorem taxes, levied within the limits prescribed by law and against all taxable property in the city, secure the GO bonds. The maximum allowable ad valorem tax rate for Texas cities is $2.50 per $100 of assessed value (AV) for all purposes with the dedicated debt-service portion limited to $1.50. The city's levy is well below the maximum at 26.7 cents per $100 of AV, including 4.12 cents for debt service. We do not differentiate...
