Fitch Ratings upgraded Robinson, Tex.’s outstanding $6.1 million of combination tax and revenue certificates of obligation, Series 1997, 1999, and 2001, to A-minus from BBB-plus. The outlook is stable.
The upgrade reflects the city’s small but growing population and tax base, improved financial position, and limited capital needs, analysts said. Robinson is located along Interstate 35 and serves as a bedroom community for Waco. Although still largely dependent on Waco, the city’s economy has grown to include services associated with interstate travel and shipping.
Its population has grown at an average annual rate of 5.5% since 2000, outpacing the county and state. The tax base expanded similarly; assessed valuation has increased at approximately 11% annually over the same period.
The city’s unreserved fund balances grew in each of the last four fiscal years, equaling $1.9 million or 56.8% of total expenditures and transfers out in fiscal 2007. Fitch said the reserves provide Robinson with increased flexibility and the ability to withstand some degree of economic pressure.