Editing Princeton, Texas (section)

==Finances==
Standard and Poor’s updated the City’s bond rating in February 2021 to a "AA−" from a "AA".<ref>{{cite web|title=Annual Comprehensive Financial Report |url=https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/1963411/FY22_Princeton_ACFR.pdf|accessdate=May 19, 2023}}</ref> Fitch Ratings raised the City's 2020, 2021, and 2022 certificates of obligation (COs) and 2021 general obligation bonds to AA+<ref>{{cite web|title=News Flash • City of Princeton's Credit Rating Raised in Rar|url=https://princetontx.gov/CivicAlerts.aspx?AID=394|accessdate=July 23, 2024}}</ref>

===History of Finances===
A Fitch business report for Princeton, dated October 9, 2012<ref name=Fitch>{{cite web|title=Fitch Affirms Princeton, Texas GOs and COs at 'A-'; Outlook Negative|url=http://www.istockanalyst.com/business/news/6081893/fitch-affirms-princeton-texas-gos-and-cos-at-a-outlook-negative|publisher=iStock Analyst|accessdate=October 13, 2014|archive-date=November 10, 2014|archive-url=https://web.archive.org/web/20141110135109/http://www.istockanalyst.com/business/news/6081893/fitch-affirms-princeton-texas-gos-and-cos-at-a-outlook-negative|url-status=live}}</ref> is titled: "Fitch Affirms Princeton, Texas GOs<ref name=GO>{{cite web|title=General Obligation Bond Definition|url=https://www.ventureline.com/accounting-glossary/G/general-obligation-bond-definition/|publisher=Venture Line|accessdate=October 13, 2014|archive-date=October 18, 2014|archive-url=https://web.archive.org/web/20141018154153/https://www.ventureline.com/accounting-glossary/G/general-obligation-bond-definition/|url-status=live}}</ref> and COs<ref>{{cite web|title=Certificate of Obligation Definition|url=https://www.ventureline.com/accounting-glossary/C/certificate-of-obligation-definition/|publisher=Venture Line|accessdate=October 13, 2014|archive-date=October 18, 2014|archive-url=https://web.archive.org/web/20141018155611/https://www.ventureline.com/accounting-glossary/C/certificate-of-obligation-definition/|url-status=live}}</ref> at 'A−'; Outlook Negative."<ref name="Fitch" /> The key rating drivers for the negative outlook are Princeton's diminished reserves, increased tax rates, slowed tax base growth, above average debt, and the city's inability to replenish unrestricted general fund balances to levels that provide adequate operating flexibility and financial cushion.<ref name="Fitch" /> The negative outlook reflects the trend of operating deficits in recent years, culminating in a negative general fund balance at the close of fiscal 2011.<ref name="Fitch" /> The fiscal 2011 net deficit was $4.2 million.<ref name="Fitch" /> The fiscal 2013 budget includes an increased [[ad valorem tax]] rate to increase funding for maintenance and operations; increased water service rates are also included in the budget.<ref name="Fitch" /> Fitch notes the city's ad valorem tax rate is above average for Texas municipalities.<ref name="Fitch" /> Overall debt is above average at 5.2% of market value despite state support for overlapping school district debt and support for direct city debt by the utility system.<ref name="Fitch" /> GO<ref name="GO" /> debt amortization remains below average with 36.8% of principal scheduled for repayment within 10 years.<ref name="Fitch" /> A newer Fitch report, dated August 27, 2013, shows Princeton's business outlook improved from "Negative" to "Stable."