County bond rating upgraded

In this time of failed banks, crashing markets and auto-industry bailouts, Yakima County is a better investment than it's been in decades, according to its bond-rating company.

County Treasurer Ilene Thomson announced Tuesday that New York-based Fitch Ratings has upgraded the county's bond rating for what is believed to be the first time in at least 25 years.

Thomson estimated that the improved rating could, because of the lower interest rates for higher-rated bond issuers, mean a savings of up to $75,000 over the life of a $5 million, 20-year bond.

County commissioners have discussed issuing bonds for a new downtown building that would separate administrative functions from court functions. Estimates for the project, which would include renovations to the existing county courthouse along with a new building, have topped $100 million.

Taxpayers would have to approve a bond issue to fund that project, although any specifics about how much debt they'd be asked to assume through tax levies are still undetermined. If it were, say, a $50 million, 20-year bond, the new rating could make a significant difference, Commissioner Mike Leita said.

"You could possibly have up to $700,000 in savings to the taxpayer, who would be paying the bond back," he said. "So that is very significant."

In its decision on the rating, Fitch wrote that, "County management's conservative budgeting practices contribute to solid financial performance."

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