Midland County Hospital District, TX – Limited Tax Surveillance Report

Rating Summary

The long-term rating reflects the strength and solid growth of Midland County Hospital District’s (the “District’s” or “Midland’s”) ad valorem tax base, as well as an ad valorem tax levy that remains well within the State of Texas (the State) constitutional limit. While KBRA’s analysis considers the District’s operations and recognizes the District’s mandate to provide essential healthcare services to Midland County’s (the “County’s”) indigent population, the rating is primarily supported by the District’s sizable and growing tax base, albeit oil- and gas-industry concentrated; the inherent strength of the limited tax pledge; and ample capacity to raise the tax levy within the constitutional limit.

KBRA’s analysis of the District focuses on an assessment of the strength of the ad valorem tax construct, including voter-approved ad valorem taxes assessed on all taxable property within the District. Under the Texas Constitution and state law, hospital districts are the only…