From the CITY OF KYLE
KYLE – City Manager Tom Mattis announced recently that the New York-based rating agency Standard & Poor’s has upgraded the city’s credit rating to A+ from A-, citing the city’s expanding residential tax base and “consistently stable financial operations with strong reserves.”
The rating boost came just before the city decided to issue $22.8 million in General Obligation bond dept to finance projects that will benefit the city’s future growth and development.
The bond proceeds will pay for several road and transportation projects, including an extension of FM 1626 and expansion of the Dry Hole Road (Kyle Crossing) Bridge. Other projects funded by the bonds are scheduled to include the construction of a public works building, several information & technology projects for City Hall and the purchase of land for the Parks and Recreation Department (PARD).
“All these projects are very important for the city as we continue to see substantial growth, not only in our residential sector, but also now in our commercial sector,” said Mattis. “It is exciting to see Kyle continuing to grow and expand given the current national economic situation. Being able to improve our bond rating at the same time is an outstanding testament to the strength of the city’s management team and guidance by our city council.”
The newly upgraded credit rating is expected to provide lower borrowing and bond insurance costs to the city. Credit obligations rated in the ‘A’ category are considered very strong in the municipal markets.
“I am very proud of the manner in which the City has been able to manage this historic growth,” said Kyle Mayor Mike Gonzalez. “A bond rating increase of two levels is almost unheard of in today’s tight credit market. This represents a strong vote of confidence in our city’s financials and local economy from an independent and highly respected credit rating provider.”
The bond market should respond well to the city’s upgraded rating.
“I believe the bond markets will be very receptive to the sell of bonds to support our projects here in Kyle,” said Charles Cunningham, Kyle Director of Finance. “We have been able to show that other projects funded by previous bonds are on the ground and going strong. The bond markets like to see the money is being used and soundly managed, and we are doing that here in Kyle.”
The City of Kyle is now the fifth fastest growing city in Texas with a population approaching 30,000. Just ten years ago, the population was well below 5,000. The city’s growth has attracted numerous new businesses, including RSI, Inc. and H-E-B Plus!
Construction is underway for more than a million square foot retail space that will also include a 210-bed Seton Hospital and professional buildings. The Austin and San Antonio Business Journals have also recognized the City of Kyle as the 2007-08 No. 1 “Hot Spot” in the Austin/San Antonio Corridor for commercial investment and development.