Edinburg, RGV– Fitch Ratings of Austin, Texas this week, affirmed The City of Edinburg is financially sound and upgraded its credit rating from a ‘AA-’ to an outstanding ‘AA.’
Fitch credits the upgrade to Edinburg’s management of a $3.925 million combination and tax revenue bond acquired to fund street, curb, and sidewalk improvements and all existing City of Edinburg outstanding General Obligation Bonds.
Fitch credits the sound economy to the City’s growth management, prudent budgeting and moderate carrying costs for debt service and retiree benefits as well as a stable economy despite a robust population growth and a consistent increase in employment levels.
The Fitch Report also notes that the City’s “exceptionally strong financial resilience is derived from a combination of revenue and expenditure flexibility as well as solid reserve levels and a general operating surplus of 1.9 percent recorded in the fiscal 2015 City Audit.”
Moving forward, the report predicts more of the same with a strong economy in part due to: $150 million in projects currently underway at the University of Texas Rio Grande Valley which now includes a medical school; $200 million expansion at Doctors Hospital at Renaissance; planned projects next to the $60 million Bert Ogden Arena that will include upscale retail, entertainment, and a hotel complex; and the $8 million soccer arena.
Sales tax revenue for the first seven months of the fiscal year is up by 4 percent from the same time last year anticipating a stronger economic finish.
Mayor Richard H. Garcia says he’s not surprised by the increase in credit rating citing strategic growth plans and good fiscal management. “For years now we’ve been working on stretching our dollars. We’ve also been doing a good job of seeking out and getting federal and state dollars to help us do more, which I hope is evident in the construction activity around town, and Fitch is right. More is coming because people want to be where the action is.”
Fitch Ratings is one of the three Nationally Recognized Statistical Rating Organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975, together with Moody’s and Standard & Poor’s.