...S&P Global Ratings assigned its '##' rating to Temple, Texas' series 2017 combination tax and revenue certificates of obligation and affirmed its '##' rating on the city's general obligation (GO) debt. The outlook is stable. Ad valorem taxes levied on all taxable property in the city secure the bonds. The maximum allowable rate in Texas is $2.50 per $100 of assessed value (AV) for all purposes, with the portion dedicated to debt service limited to $1.50. The city's home-rule charter limits its tax rate to $1.20. The city's levy is below the maximum at 67.72 cents, 36.30 cents of which is dedicated to debt service. The certificates are secured by the same limited tax pledge and further secured by a limited pledge not exceed $10,000, of the surplus revenues of the city's utility system. We rate the certificates based off the city's limited tax pledge which we view to be the stronger pledge. We understand officials intend to use series 2017 certificate proceeds to fund various capital improvements...
