BROWNSVILLE, Texas (AP)- Hurricane Dolly has lost strength after making landfall at South Padre Island, Texas.

It's now a Category 1 hurricane, with top sustained winds of 95 miles per hour.

Dolly came ashore as a Category 2 storm, but defied predictions that it would hit the Rio Grande hard.

Local officials say the levees are holding, and they're no longer worried about massive flooding.

One official cautions, though, that it's still ``very early'' in the storm.

Most of the damage was on South Padre Island.

Numerous roofs were ripped off and windows were smashed.

The roadways and yards were strewn with trees, fences, power poles and fallen streetlights.

Business signs rolled around the streets like tumbleweeds.

Authorities also say a 17-year-old boy fell from a seventh-story balcony.

They say he broke his hip, fractured a leg and hurt his head.

Thousands are reported without power in three counties, as well as South Padre Island.