The Davis County Commission recently sold $27 million in sales tax revenue bonds that will go toward flood control projects all across Davis County. The bonds, which will not require a property tax increase to pay off, will help speed up the timetable on projects ranging from Kays Creek to the Springhill neighborhood in North Salt Lake.
“These are critical projects that will now take three years instead of 30 years,” said Davis County Commissioner Louenda Downs.
The bonds will be paid by a revenue stream already going into the county, a property tax hike approved three years ago that was specifically earmarked for flood/drainage infrastructure repairs and improvements.
The commissioners saved $120,000 a year in interest rates on the bonds by having the highest bond rating available, AAA. The rating is similar to a credit rating for an individual person, showing an institution’s financial responsibility. Due to the rating, the county received 120 bond offers in a four hour period.
In the end, the commissioners know whose money they’re really saving.
“We’re working with the cities on a lot of these flood control projects,” said Davis County Commissioner John Petroff. “Whether it’s county or city money, we’re still saving taxpayer money.”