LV bond rating gets upgrade

Las Vegas homeowners may have forgotten the property-tax hike passed this spring to bring needed parks to the city.

But when city officials sold $25 million in general obligation bonds Thursday to fund 11 new parks and upgrades at existing facilities, those taxpayers got a bit more bang for their buck.

Moody's Investors Service upgraded the city's bond rating to A1 from A. The bond rating lets investors know the quality of the bond and its investment risk.

As a result of the upgrade, the city had seven bidders when it went on-line at 9 a.m. Thursday through Bloomberg's investment service.

"The less risk that investors think there is attached to a bond issue, the more interest you get from them in buying it," said city Finance Director Mark Vincent. "More interest means more competition and a better interest rate for the city."

As a result, Vincent said, the city may receive more proceeds from the bond sale than originally anticipated due to the 4.83 percent interest rate for which the bonds sold Thursday.

"It means a cost savings and it may mean more for parks," Vincent said.

The rating report from Moody's public finance group stated that the city's medium-term issue was distinctive because repayment of the bond will be funded from the 2-percent tax hike the City Council authorized in May.

The 10-year bonds will be repaid using the money generated from the tax increase -- estimated at $2.5 million in the year 2000 and $5 million in 2009 -- for an average of $3.6 million.

Fiscal year 2000 will be the third-straight year that the city will impose property tax hikes at least 10 percent below the state's determined maximum limit. The city's 2000 tax levy is $6.77 for each $1,000 of assessed value, whereas the state maximum is $7.78 for the same $1,000 assessment.

The continued population growth, the healthy city economy and its tax policy led to Moody's upgrade, Vincent said.

The $25 million in bond proceeds will fund work at 11 parks on 50 acres of land throughout the city.

Four new parks will be built, and the remaining seven will either be expanded or receive improvements.

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