Dear Brushy Creek Residents:
The Brushy Creek Municipal Utility District recently received an upgraded credit rating that makes BCMUD one of the highest-rated special districts in Texas.
The announcement came via a Nov. 29 press release from credit rating agency S&P Global Ratings.
“With the support of steady economic and tax base growth, Texas MUDs have exhibited stable ratings performance despite recent economic and event cycles such as the Great Recession, Hurricane Harvey, and the COVID-19 pandemic,” the release states.
S&P Global Ratings stated in the release the institution raised 145 credit ratings of select municipal utility districts and other special districts throughout Texas.
Beyond the elevated status, the boosted rating gives the BCMUD greater fiscal flexibility when pursuing projects that benefit the District and its residents.
“The AA rating has important market implications for our borrowing costs in future projects that serve our community,” said BCMUD Controller David Tropea. “The AA- rating that the BCMUD has had for several years is very good, but this upgrade to AA provides even more leverage to save the District and its taxpayers money in the event of future financings.”
Among other benefits, the upgraded rating will potentially allow for lower interest costs on future bond issuances. Additionally, the release states Texas MUDs should continue to benefit from economic growth that typically outpaces the nation through favorable tax base growth, strong credit fundamentals, and maintenance of high reserves.
“I believe the rating upgrade is a testament to the District’s strong capacity to meet its financial commitments,” Tropea said.
This rating action also applies to the following four series of bonds issued to BCMUD:
- $5,600,000 Unlimited Tax Refunding Bonds, Series 2020A
- $2,100,000 Unlimited Tax Bonds, Series 2020
- $8,140,000 Unlimited Tax Refunding Bonds, Series 2020
- $6,605,000 Unlimited Tax Refunding Bonds, Series 2019
BCMUD board members stated the upgrade highlights the District in several ways, from proving a steadfast adherence to prudent financial policy to showing a real-world example of how that policy can lead to positive results.
“The District's achievement of the AA bond credit rating from S&P is recognition of focused efforts to maintain fiscal responsibility and strong financial reserves.” BCMUD Board Treasurer Rebecca Tullos said.
BCMUD Board President Michael Tucker echoed Tullos and said it is a fitting commendation.
“We are thrilled to announce that Brushy Creek Municipal Utility District has achieved an upgraded bond rating, reflecting our commitment to fiscal responsibility and prudent financial management,” Tucker said. “This assessment not only underscores our dedication to providing reliable utility services but also signals a strong foundation for future infrastructure maintenance and community development. We extend our gratitude to the residents and stakeholders who have contributed to our collective success, and we remain unwavering in our mission to deliver exceptional service while ensuring the responsible stewardship of public funds.”