The 'AA-' rating on Temple, Texas' waterworks and sewer system revenue bonds is based on a pledge of the net operating revenues of the city's water and sewer system. The rating reflects the system's: Stable and diversified service area economy, Ample water supply, Consistently strong financial performance and resultant debt service coverage, Exceptionally strong system liquidity, Competitive utility rates with planned modest rate increases, and Limited future capital needs. Offsetting rating factors include the system's: Below-average income levels, and Significant fixed annual payments to the Brazos River Authority. Bond proceeds will fund the expansion of the city's water treatment plant. Temple, with a population of 54,000, is the economic center of the Killeen-Temple MSA. Its beneficial location, 60 miles north
