Clark County lands strong bond ratings

Friday, June 25, 2004 | 8:51 a.m.

Clark County has received strong bond ratings from two service bureaus that rate the financial condition of local governments.

Moody's Investors Service and Standard & Poor's assigned the county the highest ratings of any local government in Nevada. The ratings are equal to those given to the state government, Clark County Finance Director George Stevens said.

"That's somewhat unusual," Stevens said. "Local governments typically won't be rated as high."

Good bond ratings are important because they allow the county to borrow money at low interest rates. They can be important for special improvement districts, which allow the government to borrow against future assessments to pay for infrastructure improvements.

"The savings directly benefit the affected property owners by lowering the amount they pay in assessments over the life of the district," Stevens said.

Stevens said the rating was undertaken in anticipation of a $5.8 million bond issue to fund work in special improvement districts. The bonds will accrue 3.96 percent annual interest over their 10-year lifespan, he said.

Moody's said that it extended its AA bond rating because of the county's "sizable economic base, continued growth in taxable values and population, sound financial operations, which benefit from conservative budgeting practices, and a notable level of spending flexibility."

"The stable rating outlook is based on Moody's expectation that the county will continue to engage in conservative financial management practices and achieve stable financial performance despite slower, though improving, growth in gaming revenues and continuing subsidies to support the county's hospital," the company said in its analysis.

Clark County Manager Thom Reilly said the ratings are good for Clark County.

"The stable rating reflects the county's conservative approach to financial management practices, which benefit every taxpayer in the valley," Reilly said. "The high rating we received emphasizes our strong credit worthiness and our ability to achieve steady financial performance, even as our population continues to grow at a rapid pace."