DEBT SERVICE FUND
The purpose of this fund is to record property taxes levied and collected for the purpose of paying annual principal and interest payments on debt obligations with a legally binding pledge to repay with a commitment of an annual tax levy against property values certified by the Denton County Appraisal District.
The Town has utilized two different rating agencies over the years – Standard & Poor’s and Moody’s Investor Services. The AA+ and Aa2 ratings from S&P and Moody’s respectively are considered high investment-grade ratings of each agency and reflect the Town’s very strong economy, rapidly growing tax base, and strong financial position due to significant ongoing development while maintaining through conservative budgeting and formal policies, which will attract investors.
The chart below reflects ratings since 2008.
|Rating Entity||Current Rating||Prior Rating Period||Prior Rating|
|Standard & Poors||AA+||August 2021||AA|
|Standard & Poors||AA||August 2020||AA|
|Standard & Poors||AA||January 2017||AA-|
|Standard & Poors||AA-||June 2013||A+|
|Standard & Poors||A+||November 2008||NR|
Moody's Credit Report June 2021
S&P Credit Report August 2021