The 'BBB+' rating on Temple, Texas' tax increment revenue bonds reflects the city's: Expanding, although highly concentrated, base of incremental assessed valuation (AV); Strong financial position of the zone; Strong historical debt service coverage; and Pay-as-you-go capital plan. The bonds are a special obligation of the city, payable from the pledged tax increments levied on the total appraised value of the property located in the zone. The zone, which includes 12,650 acres in northwest Temple, contains industrial and manufacturing facilities and is 1.5 miles from the central business district. The zone was expanded significantly in 1999 by 9,485 acres to include the airport and the east industrial park. The district's captured AV of $77 million is largely industrial and concentrated.
