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Missouri City credit rating upgraded
For the second time in 2008, an international rating agency has upgraded Missouri City's bond rating based on the City’s sound financial management practices.
Standard and Poor's Ratings Services raised the rating to "AA" - citing "the City's historical maintenance of very strong reserves, continued economic expansion, and participation in the diverse area economy."
The rating upgrade facilitated the City's intention to issue general obligation bonds and tax and revenue certificates of obligation.
At the Sept. 2 meeting, council members approved a $21.1 million sale of bonds and $14.5 million in certificates of obligation.
In January, Moody's Investors Services also increased its rating for Missouri City to Aa3.
"Missouri City's financial position remains very strong. Consecutive operating surpluses have allowed the City to boost its reserves in each of the past four years," read an excerpt from Standard and Poor's credit analysis.
"New and ongoing mobility and transportation projects in and around Missouri City have begun to spur residential and, especially, commercial and industrial development," continued the excerpt.
The bonds are being issued as part of the 2003 bond election approved by voters.
Proceeds from the sale of the bonds will be used to improve drainage, transportation, parks and recreation facilities, and to pay costs associated with the issuance of the bonds. These funds include the following:
•Parks & Recreation $9,500,000
•Public Safety $ 470,000
•Transportation $10,105,000
•Public Facilities $1,010,000
The sale of tax and revenue certificates of obligation will fund improvements to the second and third phase of the Steep Bank/Flat Bank Regional Wastewater Treatment Plant, construction of improvements to the Mustang Bayou Regional Wastewater Treatment Plant and related facilities and the construction of improvements to the Mustang Bayou Interim Regionalization Plant and related facilities.
The debt service for these certificates will be funded by utility revenues. The true interest costs of the bonds and certificates is 4.65 percent and the 4.708 percent, respectively.
Standard and Poor's Ratings Services raised the rating to "AA" - citing "the City's historical maintenance of very strong reserves, continued economic expansion, and participation in the diverse area economy."
The rating upgrade facilitated the City's intention to issue general obligation bonds and tax and revenue certificates of obligation.
At the Sept. 2 meeting, council members approved a $21.1 million sale of bonds and $14.5 million in certificates of obligation.
In January, Moody's Investors Services also increased its rating for Missouri City to Aa3.
"Missouri City's financial position remains very strong. Consecutive operating surpluses have allowed the City to boost its reserves in each of the past four years," read an excerpt from Standard and Poor's credit analysis.
"New and ongoing mobility and transportation projects in and around Missouri City have begun to spur residential and, especially, commercial and industrial development," continued the excerpt.
The bonds are being issued as part of the 2003 bond election approved by voters.
Proceeds from the sale of the bonds will be used to improve drainage, transportation, parks and recreation facilities, and to pay costs associated with the issuance of the bonds. These funds include the following:
•Parks & Recreation $9,500,000
•Public Safety $ 470,000
•Transportation $10,105,000
•Public Facilities $1,010,000
The sale of tax and revenue certificates of obligation will fund improvements to the second and third phase of the Steep Bank/Flat Bank Regional Wastewater Treatment Plant, construction of improvements to the Mustang Bayou Regional Wastewater Treatment Plant and related facilities and the construction of improvements to the Mustang Bayou Interim Regionalization Plant and related facilities.
The debt service for these certificates will be funded by utility revenues. The true interest costs of the bonds and certificates is 4.65 percent and the 4.708 percent, respectively.
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