City Contact:
Ryan Rapelye, City Manager
City of Castle Hills 210.293.9673
rrapelye@castlehills-tx.gov
FOR IMMEDIATE RELEASE
February 8, 2023
City of Castle Hills – Bond Rating as “AA” Reaffirmed from Standard & Poor’s
CASTLE HILLS, TEXAS – Standard & Poor's Ratings Services reaffirmed the City of Castle Hills a “AA” for its third rating. The City of Castle Hills expects to continue efforts to address long-term infrastructure projects related to streets and drainage. The City of Castle Hill’s Capital Improvement Plan (CIP) originally adopted in November 2018 identified the need to fund the reconstruction of nearly $10 Million as it relates to reconstructed streets. The 2020 Certificates of Obligation (COs) facilitated in the reconstruction of fourteen streets at $3.25 Million. Currently, the City needs another $3 Million in funding in order to complete additional streets requiring reconstruction/full depth category within the CIP. Residents approved the issuance of $6 Million in Certificate of Obligations through the November 2022 Special Election. As a result, the City had to have another rating performed by S&P before issuing the 2023 Certificate of Obligations.
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,
- Adequate budgetary performance,
- Very strong liquidity and strong management conditions,
- Healthy fund balance and strong institutional framework.
“The 2023 rating by S&P is our 3rd AA rating in the last 3 years and it will allow us to continue much needed street and drainage improvements in Castle Hills. said Castle Hills Mayor JR Treviño. “This next round of infrastructure investment should successfully address all streets classified in “Poor” condition. I would be remiss if I didn’t thank the Castle Hills team for their diligence both through policy and execution, which has earned us another AA rating.”
The City of Castle Hills has already made momentous strides to address flooding with completed projects such Banyan/Carolwood Phase I and II. The City has also identified $3 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 and will conclude the reconstruction category with the CIP. The additional issuance of COs, will allow the City to continue to address the streets which require full-depth and have a low Pavement Condition Index (PCI) below 50%. The AA: “Double A.” rating indicates a very strong creditworthiness.
“We are very pleased and proud that S&P has affirmed our rating, this is the City of Castle Hills’s third bond rating,” said City Manager Ryan Rapelye. “The combination of the strong local economy, sound financial/budgetary policies, healthy reserves and the City Council’s leadership have resulted in this being reaffirmed for the third consecutive time, this rating is significant as we continue to address the 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.