On Friday, July 23, 2021, S&P Global Ratings assigned a “AA” long-term rating and stable outlook to the City of San Marcos’ general obligation bonds and certificates. The rating follows a thorough review of financial documents and is an indicator of the City’s capacity to meet its financial commitments.
In determining the rating, S&P Global Ratings assessed the City’s total tax rate, which fell well below the maximum at 59.3 cents per $100 of taxable assessed value, including 17.36 cents for debt service. By comparison, Texas statutes provide 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.
“With the economic climate the entire nation has experienced during the pandemic, the AA stable outlook bond rating is truly great news,” said Finance Director Marie Kalka. “The rating is an indicator of the City’s commitment to be responsible stewards of public funds, which we take very seriously.”
Despite the pandemic, S&P Global Ratings’ analysis indicated the City 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.
For more information, contact the Finance Department at 512.393.8170. For media inquiries, contact communicationsinfo@sanmarcostx.gov.
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