KYLE — The bond ratings service Standard & Poor’s has assigned its “A+” long-term rating and a stable outlook to City of Kyle for refinancing $14.2 million in debt, while also reaffirming the city’s A+ long-term rating.
“This is very good news for our city and shows that we are continuing to be good stewards of the people’s money,” Kyle Mayor Lucy Johnson said. “We’ve made great strides recently in shoring up Kyle’s finances and improving our transparency as to how we budget and spend tax dollars. I certainly think a big round of congratulations is due to our city manager and his staff for their hard work and to our city council for their diligence is overseeing the budget process.”
The debt being refinanced was issued primarily to fund the extension of Kyle Parkway east of IH-35 to Dacy Lane, which was a component in bringing Seton Medical Center-Hays to Kyle. In addition to the hospital, two new professional buildings, Lowes Hardware, Walgreens, and several other businesses have opened along the roadway, where a new Walmart is also slated to begin construction later this year.
The city is refinancing the debt to level out payments during the next three years and save approximately $1 million in financing cost over the 17-year life of the bonds. The refinancing will smooth out debt service payments that would have otherwise spiked during the next three years.
The agency cited Kyle’s access to Austin, strong finances and resilient tax revenue through the national economic downturn in assigning the rating.
“This affirmation by the rating agency is testament to the sound financial practices we’ve put in place,” said Perwez Moheet, City of Kyle Director of Finance. “We will need to continue to monitor the economic climate as we move forward to ensure that we are able to continue to improve the City’s financial standing.”