WEST BOUNTIFUL -- It was a dark and stormy Tuesday night in West Bountiful -- lightning flashed, thunder rolled and rain pounded down.
But Josh Burningham did have some good news.
Burningham, from Lewis, Robertson and Burningham, Inc., and the city's bonding consultant, confirmed a deal that will save West Bountiful as much as $33,000 in payments on a water refunding bond.
But, that wasn't all.
Moments later he told members of an appreciative city council that the city had received ratings of A- and A+ as it prepares to issue a sale tax revenue bond to fund construction of a new city hall.
According to Burningham, West Bountiful received four bids on the water refunding bond. He recommended an offer from Zions Bank, which, he said, will save the city between $7,000 and $8,000 a year over the previous issue and shorten debt service by one year.
Following Burningham's suggestion, council member James Behunin motioned that the city approve a resolution "adopting the final water refunding bond and confirming the sale of the series 2004 bonds, not to exceed $750,000." He was seconded by DeVan Pack and the measure was approved by a 4-0 vote. (Council member Bonnie Sorenson was excused Tuesday evening).
News of the city's high ratings -- A- from Standard & Poors and A+ from Fitch -- was particularly satisfying to all concerned. Burningham said that, despite West Bountiful's size, its low debt level, sound financial situation and high credit rating, among other items, impressed both rating organization.
"I feel that we will be able to get an AA insurer on the sales tax revenue bond issue," he added, noting, "I anticipate returning April 20 to confirm the sale."
Interest on the bonds was put at 4.8 percent with annual debt service posted at between $135,000 and $137,000. That's well below the $150,000 the city had budgeted for. Wells Fargo Bank will underwrite the issue.
"It appears we'll soon have the money to build this building," stated Burningham.
That building, of course, is a new city hall. But just $1.5 million of the $2.3 million in bonds, will be used to pay for that facility. Because the new building will be constructed at the same location as the current (550 N. 800 West), taking ground now being occupied by the public works building, a new home for that department will have to be built as well.