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City of San Marcos general obligation bonds receive AA S&P Global Rating
The City of San Marcos announced that its general obligation bonds and certificates were assigned an “AA” long-term rating by S&P Global Ratings.
The city said its rating comes after a thorough review of financial documents and is an indicator of its capacity to meet its financial commitments.
“With the economic climate the entire nation has experienced during the pandemic, the 'AA' stable outlook bond rating is truly great news,” Finance Director Maire Kalka said. “The rating is an indicator of the city’s commitment to be responsible stewards of public funds, which we take very seriously.”
S&P Global Ratings determined the city’s rating by assessing San Marcos’s total tax rate, which was below the maximum $0.593 cents per $100 of taxable assessed value, which included $0.1736 for debt services. The city added that Texas statutes allow for a maximum ad valorem tax rate of $2.50 per $100 of taxable assessed value and a maximum of $1.50 of the $2.50 for all ad valorem tax obligation debt service.
Additionally, the city said S&P Global Ratings’ analysis showed that the City of San Marcos has seen “healthy property and sales tax growth. The analysis further indicated that the city’s strong finances and very strong reserves were supported by robust budgeting, management policies, and long-term financial plan.”
S&P Global Ratings’ assessment is reliant on information submitted by the city. Maintenance of the AA long-term rating is subject to periodic review of relevant information including financial documents, direct loans, and debts.
Information provided by the City of San Marcos