Summary: Texas City, Texas; General Obligation

S&P Global Ratings assigned its 'AA-' rating to Texas City, Texas' $3.145 million series 2020 general obligation (GO) refunding bonds. At the same time, S&P Global Ratings affirmed its 'AA-' rating on the city's GO debt and certificates of obligation outstanding. The outlook is stable. The bonds are payable from the city's ad valorem taxes, which are levied on all taxable property in Texas City. Per state statute, the city's total tax rate is limited to $2.50 per $100 of assessed value (AV), $1.50 of which can be dedicated for debt service. For fiscal 2020, the city's tax rate is 54 cents (45.71 cents for operations and 8.29 cents for debt service), which is well below the state's limitations. The

...S&P Global Ratings assigned its '##-' rating to Texas City, Texas' $3.145 million series 2020 general obligation (GO) refunding bonds. At the same time, S&P Global Ratings affirmed its '##-' rating on the city's GO debt and certificates of obligation outstanding. The outlook is stable. The bonds are payable from the city's ad valorem taxes, which are levied on all taxable property in Texas City. Per state statute, the city's total tax rate is limited to $2.50 per $100 of assessed value (AV), $1.50 of which can be dedicated for debt service. For fiscal 2020, the city's tax rate is 54 cents (45.71 cents for operations and 8.29 cents for debt service), which is well below the state's limitations. The ad valorem taxes are not levied on a narrower or distinctly different tax base, and there are no limitations on the fungibility of resources available for the payment of debt service. Therefore, we view the limited-tax pledge to be on par with the issuer credit rating, which reflects the city's...

Summary