The City of Sultan is in the process of issuing water and sewer revenue bonds for various improvements. As part of the process, the city’s staff decided to pursue a rating grade on the water and sewer System from the national rating agency of Standard and Poor’s.
According to City Administrator Ken Walker, “the city was notified on June 2that the city’s water and sewer revenue bonds are rated “AA-”. This is a great accomplishment for the city and its ratepayers!”
“The higher the rating grade, then the lower the interest cost. A rating in the AA category is considered high investment grade quality. We are very pleased and proud to achieve the AA- rating grade,” said Finance Director Laura Koenig.
The city will be financing approximately $2,750,000 for various improvements to the water and sewer system. Public Works Director Mick Matheson described the improvements as the following: “(a) replace the sanitary sewer main and side sewer services, and water main and services beneath High Avenue from 1st Street to 4th Street; (b) replace the sanitary sewer main and side sewer services, the water main and services beneath 4th Street from Alder Avenue to Fir Avenue. The storm drainage system will also be improved in strategic spots to improve drainage; (c) replace the existing booster pump station with a new facility; (d) the purchase of a generator, motor control center, and telemetry panel including electrical engineering for the sanitary sewer main pump station; and (e) replace the sanitary sewer main and side services and the water main and services beneath Alder Avenue from 5th to 8th Street.”
As part of the rating process, city staff prepared for a presentation to Standard and Poor’s. The team presented information and answered questions that dealt with the topics of management, finances, regional economy and long-term planning. The water and sewer revenue bonds will be underwritten by D.A. Davidson and Co., Trading and Public Finance Office in Seattle.