College prepares to sell $175 million in general obligation bonds approved by voters last November
The Austin Community College District (ACC) continues to show fiscal strength according to recent bond ratings released by Fitch, Standard & Poor, and Moody.
Fitch Ratings assigned an AA+ rating, Standard & Poor assigned an AA+ rating, and Moody assigned an Aa1 rating to $175 million in limited tax bonds, series 2015. It’s the first portion of a $386 million bond package that voters approved in November 2014 to construct, renovate, and equip districtwide projects, including, but not limited to, the renovation and repurposing of Highland Mall, the purchase of land for the proposed southeast Travis County regional workforce training center, and the construction of the new Leander Campus.
“These ratings reflect the district’s strong service area bolstered by growing taxable values and a sizeable base in the Austin area,” says Dr. Ben Ferrell, ACC executive vice president, Finance & Administration. “These are strong reports that reaffirm our healthy ratings and all maintain a stable outlook. We are committed to being good stewards of the funds entrusted to us by our taxpayers and students.”
Despite the significant size of the current issuance, the district’s debt burden calculations and debt-to-operating-revenue calculation are modestly impacted given the significant size of the district tax base and operating budget.
The rating agencies cited factors including ACC’s history of sound fiscal practices, the district’s sizable tax base, competitively priced education, and continued demand for college offerings.
To read more about the ratings, visit ACC’s business reports webpage; see the general obligation tax bonds section.Back to Top