Moody's Investors Service recently assigned an Aa2 rating to Clark County, the company wrote last week.
About $10 million in upcoming bonds will be used to finance renovations at the county administrative office building as well as construction of a new 911 dispatch center, along with various other capital improvements. Following the sale of the bonds, the county will have about $25.4 million in outstanding debt, Moody’s said.
Outlooks are typically not assigned to local governments with this amount of debt, Moody’s wrote. The county’s financial position remains strong due to “growing reserves and prudent management,” the report said. The county’s debt and pension burdens are moderate and carry manageable fixed costs, it said.
“We’re pleased with the results of the report,” Clark County Administrator Jenny Hutchinson said. “While it shows we have some challenges in the future, we’re doing all we can to stay financially responsible to help Clark County grow in the coming years.”
The report said: “The Aa2 issuer rating is equivalent to the county's theoretical general obligation unlimited tax pledge and reflects the county's strong financial profile characterized by prudent financial management and ample fund balance and low debt burden. These strengths are balanced against a relatively weak labor market, ongoing population loss, and a significant decline in sales tax collections that will limit future financial flexibility.”
The county could improve its rating based on a reversal of the county’s current labor market and population trends, Moody’s said.