A Texas city is moving forward with a $9.44 million loan to build a new fire station after credit agencies praised its financial health.
The positive ratings for Galveston are particularly extraordinary, given how low its population growth has been over the last few years and how vulnerable the city is to hurricanes, according to The Galveston County Daily News.
Here's what to know
The two credit agencies, Fitch and Moody's, awarded Galveston with AA+ and Aa3 ratings, which pushed the $9.44 million loan forward for the city. The new debt from the loan is expected to add about $17 per year to the average homeowner's tax bill, starting in 2028, the paper said.
The money is planned for Fire Station No. 2 — a decision voters supported in the November 2025 bond election.
The city's reserve levels were a key reason the ratings came in strong.
Fitch did note in its rating that Galveston's exposure to storms and flooding didn't hurt the score because of the city's reserves and access to government disaster assistance.
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Overall, the new fire station will be a bond-funded safety asset in an area that experiences frequent hurricanes, which will hopefully provide more resources for firefighters during emergencies.
What's being done?
City officials have been working to preserve reserves while maintaining budget flexibility.
The city is balancing two priorities at once: investing in essential public safety infrastructure while keeping borrowing costs manageable for homeowners.
City Manager Brian Maxwell said the strong ratings reflect a long-term effort to strengthen the city's finances and prepare for disruptions: "One of my main priorities as city manager has been strengthening the city's budget and financial policies, as well as building a reserve that can help the city in times of natural disasters."
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