The rating on El Paso, Texas' bonds reflects: A stable area economy, Continuous customer base growth, Strong debt service coverage, and Low rates providing future rate flexibility. A higher rating is precluded by a large, $437.8 million capital improvement program that is expected to be funded from approximately 50% debt issuance and 50% from cash-on-hand and other revenues. El Paso provides water and sewer service to a population of about 617,215 in and outside the city. Annual customer base growth is a manageable 2%. Economic stability is provided by the Fort Bliss military base, the University of Texas at El Paso, and the El Paso Independent School District. These sources of employment temper concerns related to 10% countywide unemployment over
