The maturity dates run from Feb. 15, 2004 through 2018. Part of the proceeds will be used to fund land acquisition and construction of a city hall complex in the town center.

The AA rating also covers an outstanding $92.1 million in general obligation bonds and $10.3 million certificates of obligation. The rating reflects the city's history of strong financial performances in an environment of escalating service demands, as well as its steady economic and tax base growth, relatively high wealth levels and low property tax rate, the rating firm said.

Fitch also considered Sugar Land's above average debt load, which is largely associated with the assumption of municipal utility district debt and the reduction in its sales tax revenue due to the current economic slowdown. The rating firm says the city's financial operations have consistently stood up to both service demands produced by rapid growth in the past decade and declining growth in sales tax revenue due to the sluggish national economy.