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The original item was published from 9/11/2020 5:53:20 PM to 9/26/2020 12:00:05 AM.

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Posted on: September 11, 2020

[ARCHIVED] City of Castle Hills – Bond Rating as “AA” from Standard & Poor’s

AA rating

S&P Rating Release

CASTLE HILLS, Texas – Standard & Poor’s Ratings Services has issued the City of Castle Hills a “AA” for its introductory rating. The City of Castle Hills will be issuing debt in order to address long-term infrastructure projects related to streets and drainage. Based on the current Street and Drainage needs within the City of Castle Hill’s Capital Improvement Plan (CIP) infrastructure needs are close to $42 million. 

The rating agency’s thorough evaluation and due diligence process that resulted in the "AA" rating for the City of Castle Hills included the following primary factors:

 

·         Very strong economy,

·         Very strong budgetary flexibility,

·         Adequate budgetary performance,

·         Very strong liquidity,

·         Strong management conditions,

·         Weak debt and contingent liabilities with a healthy fund balance, and

·         Strong Institutional Framework.

 

“I am incredibly proud of the City staff and Council for their thoughtful and levelheaded leadership that has produced sound fiscal policies and strong framework; which have earned us this initial rating by S&P” said Castle Hills Mayor JR Trevino. “The issuance of debt is a critical decision for any City Council and we have given this decision a lot of careful thought. Our utilization of the Capital Improvement Plan will provide us a structured approach to move forward with this community investment addressing longstanding street and drainage issues. I’d be remiss if I didn’t acknowledge City Manager, Ryan Rapelye, for his steadfast leadership over the last 2 years in preparing us for this moment”

 

The debt being issued is to allow the city to address nearly $3.3 Million for streets. This involves reconstruction work of many streets as outlined in the City’s CIP and $5 Million in drainage improvements in various watersheds located in Castle Hills. The street reconstruction projects selected are the highest priority within the City’s Street CIP.  The AA: “Double A.” rating indicates a very strong creditworthiness and will be beneficial in obtaining a lower interest rate for the debt issuance. A rating of “AA” is two notches below the highest investment grade rating available of “AAA”.

 

 “We are very pleased and proud that S&P has provided this rating, this is the City of Castle Hills’s first bond rating,” said City Manager Ryan Rapelye. “The combination of the strong local economy, sound financial policies, and Council’s leadership have resulted in this bond rating as we move forward to address long-term infrastructure needs in Castle Hills.”

For questions related to this bond rating or any future capital improvement projects, please contact Ryan Rapelye, City Manager, by email at rrapelye@castlehills-tx.gov  or by calling at (210) 293-9673.

  

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