Moody's Investors Service said it has assigned a Aa1 rating to the city of Keller, Texas's $11.15 million general obligation refunding bonds, Series 2014, $9.9 million combination tax and tax increment reinvestment zone number one revenue refunding bonds, Series 2014A and $3.87 combination tax and limited surplus revenue certificates of obligation, Series 2014.
Concurrently, Moody's upgraded to Aa1 the rating on the city's outstanding parity debt affecting $88.3 million.
Proceeds from the sale of the bonds will be used to refund the city's Series 2004 and 2005 GO bonds, as well as the Series 2003 and 2006 CO bonds.
Proceeds will also be used for renovation and expansion projects within the Keller Development Corporation.
The certificates and bonds constitute direct obligations of the city, payable from a direct and continuing ad valorem tax levied, within the limits prescribed by law, on all taxable property located within the city. The certificates are additionally secured by a limited pledge (not to exceed $1,000) on the net revenues of the city's waterworks and sewer system.
The upgrade to Aa1 rating reflects the city's moderately sized tax base located within the Dallas-Fort Worth (DFW) metroplex that has continued to grow, as well as its above average socio-economic profile. The rating also reflects above-average reserve levels along with a modest debt burden that are amortized rapidly.
