Credit rating boost will help North Las Vegas save $40M
North Las Vegas will save more than $40 million in interest over the next 18 years after closing a sale of general obligation bonds this week.
The savings are the result of an August credit rating boost that allows the city to pay less interest on its bond payments. City spokeswoman Delen Goldberg said the savings surpassed the city’s expectations.
“We knew good things would come out of this, but our minds were blown,” she said.
North Las Vegas’ credit rating fell to junk bond status during the recession but has improved over the past several years.
Goldberg said fiscal irresponsibility from the city’s prior administration also contributed to the poor credit rating. North Las Vegas found some relief when city leaders cut staff and scaled back services, which Goldberg said have since been restored.
But officials also credit the Legislature with creating a long-term plan for cities such as North Las Vegas to wean off reliance on the utility fund to supplement the general fund. Goldberg said an expanding tax base from new companies coming to the city will help offset money taken from the utility fund.
Mayor John Lee named increasing the city’s rating as one of his goals ahead of delivering his State of the City address last year.
In August, Moody’s Investors Service upgraded the city’s rating to within one grade of its June 2012 rating of A3. City Manager Ryann Juden has called the rating increase “one of those crowning moments” for the city.
The city’s sale of nearly $100 million in general obligation bonds closed Tuesday, according to city documents.
“That is a huge opportunity to invest that money back into the city,” Lee said.
City officials want to invest in infrastructure, economic development, and existing and new city employees, Goldberg said.
The City Council on Wednesday night ratified a collective bargaining agreement with the North Las Vegas Police Officers Association. The contract runs from July 2018 through June 2020.
Contact Blake Apgar at bapgar@reviewjournal.com or 702-387-5298. Follow @blakeapgar on Twitter.
