Davis County was able to take advantage of that last week, as $6 million in tax anticipation notes were sold at an interest rate of .55 percent.
With the bonds to be paid off in six months, that puts interest at only $28,000, said Steve Rawlings, County Clerk/Auditor.
“That was a very, very reasonable interest rate,” he said, noting further the county was given the “best rate you can get by Moody’s” bond rating service in New York.
“We do this every year,” Rawlings explained. “We’ve got a lot of our revenues, about half, in property taxes. We don’t get those until the end of the year. We’ve got to have operating revenues for part of the year, then make the (bond) payment on Dec. 30.”
Speaking further of the yearly bonding, he said, “I hope some day to get to a point we won’t have to borrow, won’t have that interest. A few years ago we had some bonds for $13 million.”
The bond sale demonstrates the strong financial stability of Davis County, he said. “We are certainly in a situation that is a little different than the rest of the country.
“The economy hasn’t slowed down quite as much here. Some revenues will be a little short, such as in sales tax, so we’re asking (county) departments to really hold the line. They have held constant,” he added, of efforts expended for the current 2009 year budget, for example, he said