Holladay City gets straight A’s, moves forward with new fire station plans

Not unlike the coveted school report card that determines the future of a student, a city’s credit rating affects its ability to get financed. Holladay City was recently re-ranked by Standard and Poors with an “AA” rating, a rank just one notch lower than the federal government. City officials used the new ranking as part of a process to refinance existing bonds and fund the rebuild of a much-needed fire station.

“We knew the city had a strong credit rating, and we took that rating and used it to bid in the bond market,” Zions Bank Vice President of Public Finance Alan Westenskow said. “We had bids ranging from 2.88 percent on the low end to 3.34 percent on the high end.”

City Manager Randy Fitts said the higher percentage was very close to what he was anticipating, so the lower numbers were a pleasant surprise.

Refinancing the existing 2004 bond at the lower rate will allow the city to be able to afford the $3.5 million fire station without dramatically impacting the city’s general fund. Once the bonds are refinanced, the 2011 bonds will generate a net present value savings of almost 8 percent, or more than $102,000 per year. The new bonds will mature in 2031.

Perhaps the only dark cloud in the bright outlook of building a new fire station is that the Holladay Community Garden will have to be relocated. Garden organizer Doug Stark started the community garden in 2007 and has enjoyed seeing the participation grow each year.

“We went from 12 people involved with 15 garden plots to 70 people participating with 80 garden plots,” Stark said. “We have just increased it every year.”

Not having access to as large of a plot as before, Stark said the community garden will have to be split up into smaller gardens throughout the city.