Clinton's AA bond rating means big savings

CLINTON -- A small investment in getting a professional bond rating will result in big savings for the city.
The city spent approximately $900 to send Mayor Mitch Adams, City Manager Dennis Cluff and Financial Adviser Johnathan Ward to California to do a bond rating presentation. City officials decided to get rated so they could try to sell more than $4 million in bonds at a lower interest rate. Ward told council members the personal presentation to Standard and Poor's bond rating agency helped them to get an AA rating.
Ward, vice president of public finance at Zions Bank, said an AA rating for a city the size of Clinton is almost unheard of.
Ward told the council he felt optimistic about the rating the city would receive, but only expected an AA-minus rating.
He said he was very happy with the rating the city received.
Ward said larger cities such as Layton and Clearfield have received ratings of AA-minus.
"This puts you on par with West Valley City," said Ward. West Valley City has an AA bond rating.
The city was able to sell the bond for a yearly savings of $18,000. Over eight years, the city will save $144,000.
Council candidate Joanne Hansen said the council should be commended. She said the savings to the taxpayers was an accomplishment for the council.