 |
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
|
|
 |
|
February 2, 2005
District Receives Bond Rating
Olympus Terrace Sewer District is in the process of selling Sewer Revenue Refunding Bonds to take advantage of the low interest rates and save money for the District. As part of the process for preparing the bond sale, the District decided to pursue an “underlying” bond rating. Moody’s Investors Services recently announced that the District was awarded an underlying bond rating of “A3”.
“This is a great accomplishment for the District,” according to District Manager Patrick Sorensen. “This bond rating reflects that Olympus Terrace Sewer District is very well-managed through excellent policy direction provided by the District’s elected Board of Commissioners, and has excellent financial policies in place”. Sorensen states “The District received the bond rating from the national bond rating agency of Moody’s based on the following factors: (1) strong debt service coverage; (2) sound financial management and planning; (3) low amount of outstanding debt; and (4) a stable customer base in the Mukilteo area.”
Sue Parks, the District’s Finance Manager states “the District is timing the sale of the bonds to capture very low interest rates. The Bonds will also receive the highest rating of a “Aaa” with the purchase of a bond insurance contract from Financial Security Assurance Corporation. The estimated average interest rate for the refunding bonds is less than 3.00%.”
The District is expected to save approximately $172,000 by refinancing at lower interest rates, according to the bond underwriter, Jim Nelson of Martin Nelson & Company, a Washington investment banking firm.