Texas Border Business
BROWNSVILLE, Texas – The City of Brownsville recently earned an Aa3 rating from Moody’s Ratings for its upcoming issuance of Combination Tax and Revenue Certificates of Obligation for Series 2024. The issuance, which totals approximately $23.4 million, supports the City’s strong financial management and economic growth.
Key Highlights of the Rating:
Issuer and General Obligation Limited Tax (GOLT) Debt Ratings: Both retain an Aa3 rating, with post-issuance GOLT debt totaling $197 million.
Economic Growth: Brownsville continues to thrive as a regional economic hub with significant residential and commercial development. The City benefits from robust cross-border trade with Mexico and expanding port activities, contributing to a diversifying economic base.
Financial Health: The City’s financial situation is strong, thanks to an expanding economy with growing residential and commercial development.
Reserves and Debt: The City has good liquidity and fund balance reserves, with 50% and 95% of its operating revenue, respectively. The total debt will be manageable, even as the city plans to issue more debt for infrastructure projects.
Bonds are secured by property taxes and, if necessary, surplus revenue from the City’s landfill system. The proceeds from the bonds will be used for various infrastructure projects.
“This rating action for our upcoming Combination Tax and Revenue Certificates of Obligation for Series 2024 highlights Brownsville’s dedication to maintaining a stable and progressive financial environment, while fostering substantial growth and development throughout the City,” said Alan Guard, City of Brownsville Deputy City Manager and Chief Financial Officer. “It assures our community and investors that we are continuing our journey of growth and development with fiscal responsibility at the forefront.”
