Financial ratings agency Standard & Poor's upgraded the city's bond credit rating one level from A+ to AA-.
Hutto city officials said in a statement that the new rating would increase the city's ability to issue debt for capital projects as well as secure lower interest rates on bonds.
The city's first-ever general obligation bonds were approved in 2009, when voters passed three propositions totaling $16.8 million to fund transportation and park improvements as well as a new YMCA facility. In February city officials said they were considering bonds as a method to fund $21.3 million in improvements to the city's wastewater plants.