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Davis gets low rate on $11.7 million loan

SHARE Davis gets low rate on $11.7 million loan

FARMINGTON — The economy, which has been bad for Davis County tax revenues, has given county government a break as county commissioners borrowed $11.7 million at the lowest rate in nearly 50 years.

The commission authorized the borrowing against next fall's property tax revenues at 0.95 percent, lower than last year's rate of 1.65 percent. The money, borrowed from Zions National Bank, will be used to operate county government until the end of the calendar year.

"This is the lowest rate I've seen since I've been here," said county Clerk/Auditor Steve Rawlings.

"It worked out really well," said Jon Bronson, Zions Bank public finance agent. "It is the first time we broke 1 percent."

Last year the county borrowed $12.5 million, but after reducing the county budget because of a slower economy, the commission needed to borrow only $11.7 million this year, Rawlings said. Last year the county paid $107,406 in interest. This year it will pay $61,840 for a savings of $45,566.

Rawlings added the county's strong bond rating helped earn the favorable rate, the lowest given any state agency this year.

Each June the County Commission authorizes the issuance and sale of Utah tax and revenue application notes to provide the cash flow needed to operate the county until property tax revenues start flowing in during November and December.