City’s utility bonds receive unexpected upgrade

The national Standard and Poor’s Ratings Services recently upgraded the bond rating on city of Marysville water and sewer revenue bonds from “AA” to “A+.”

  • Wednesday, July 2, 2008 3:18pm
  • News

MARYSVILLE — The national Standard and Poor’s Ratings Services recently upgraded the bond rating on city of Marysville water and sewer revenue bonds from “AA” to “A+.”

What made this bond upgrade unique was that the city did not seek it out, according to Community Information Officer Doug Buell.

City Finance Director Sandy Langdon said Standard and Poor’s contacted city officials to review whether or not large bonds, such as Marysville’s $48 million bond issuance in 2005, warranted a downgrade due to the nationwide problems with sub-prime mortgage loans.

In short, the answer was just the opposite.

“A review of our water and sewer revenue bonds found that our city’s utility is in good shape financially and the current economic outlook for our region is positive,” Langdon said.

According to information released by the city, Standard and Poor’s looked at debt service trends and other factors dating back three years. The results were positive, even as the city undertook a major expansion of its wastewater treatment plant, wrote Standard and Poor’s Credit Analyst Chris Morgan.

Equally important was the contribution of regular minor rate adjustments the city has undertaken since 2005, reflecting what the rating service felt was an active approach at ensuring that the city’s utility can continue to meet its financial obligations.

Again, according to the city, key rating factors included:

— Very strong debt service coverage, with some reliance on one-time charges associated with development.

— Modest capital needs with sufficient capacity as envisioned by city planners.

— A regular record of annual rate adjustments.

“The major benefit of the rating upgrade to the city is that it improves the ability for the city to market its bonds to financial institutions providing lower interest rates and lower bond insurance premiums,” Langdon said.

More in News

Lions Clubs ‘Give Big for Health’ White Cane Days on Giving Tuesday

Undeterred by COVID, clubs fundraise online for vision, hearing and health screening programs

Inslee: Stay home for 2 weeks

By Jerry Cornfield and Zachariah Bryan The Herald OLYMPIA — Gov. Jay… Continue reading

Fences have been put up around Marysville playgrounds to keep kids off. (Steve Powell/Staff Photos)
Marysville leaders concerned as (almost) everything’s closing

By Steve Powell spowell@marysvilleglobe.com MARYSVILLE – Within hours of Gov. Jay Inslee’s… Continue reading

Briefly

Beware of coronavirus scams SEATTLE – U.S. Attorney Brian T. Moran is… Continue reading

Jennifer Thompson, left, and her father Ron Thompson secure a new remembrance plaque to the Oso slide site gate on Sunday, near Oso. Ron Thompson handcrafts a new plaque for the gate every year. (Olivia Vanni / The Herald)
Community remembers Oso slide victims, survivors

By Ben Watanabe The Herald OSO — The power of remembering the… Continue reading

People gather to pick up special allergy meals before leaving Lakewood High School on Wednesday in Marysville. (Olivia Vanni / The Herald)
Districts taking meals to students since schools are closed

By Stephanie Davey The Herald LAKEWOOD — Children wearing pajamas stood outside… Continue reading

Jon Nehring
Letter about coronavirus from Marysville Mayor Jon Nehring

This is an edited version of a letter Marysville Mayor Jon Nehring… Continue reading

DOUGLAS BUell/Staff Photos                                Lead cook Keina Gowins with Presidents Elementary hands out free grab-and-go breakfasts and lunches to students and parents outside the school Wednesday. Presidents and AHS serve as central kitchen sites for preparing meals, which starting next week will expand to 12 delivery sites from Silvana to Oso. Right, Arlington Food Bank executive director Carla Gastineau and Mike Simpson, food bank board president and owner of Arlington Grocery Outlet, partnered with the district with their Meals Til Monday program, and gave a woman a box of donated food while at Presidents.
Arlington students won’t go hungry during the COVID-19 school closures

ARLINGTON – Arlington schools are closed through April 24 to help fight… Continue reading

Scott Beebe hands out Chromebooks to people in their cars. (Steve Powell/Staff Photos)
Marysville parents anxious to pick up school materials for kids

By Steve Powell spowell@marysvilleglobe.com MARYSVILLE – A few days ago Marysville schools… Continue reading

Jon Nehring
Marysville leaders’ trip to D.C. productive

MARYSVILLE – City leaders recently obtained advice on how to get more… Continue reading

Crews will blow garbage into the street and sweep it up over the next few weeks. The city is asking people to move their cars, trash cans and recycle bins when they come around to help them do a thorough job. (Courtesy Photo)
Marysville shuffles workers due to virus, seeks public’s help for sweepers next week

By Steve Powell spowell@marysvilleglobe. MARYSVILLE – From working from home to teleconferencing… Continue reading