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May 1, 2010

City bond rating climbs to AA-

By Trent Moore The Cullman Times

CULLMAN — The bond rating for the City of Cullman has improved from A+ to AA-, according to the Standard and Poor’s financial index, city officials announced this week.

“We’ve moved up, so that’s an even better credit rating,” Cullman Mayor Max Townson said. “This is great news.”

The improved rating will help the city’s negotiating power when seeking bonds and loans for future projects — such as the upcoming Duck River dam and reservoir.

“Now, when we go out to issue a bond, this will allow us to get a better bond interest rate,” Townson said.

To earn the improved rating, Townson said the city has made efforts to keep ample reserve funds in relation to the projected budget and debt.

“We try to maintain 30-40 percent of our budget in reserves, so this means we have a good percentage of reserve to back up outstanding debt and bonds,” he said. “It means we’re being good stewards of the taxpayers money. It shows the past administrations, and this administration, have done an outstanding job.”

With the economy slow, Townson said the council made a concerted effort to curtail spending this year.

“We’ve made adjustments in our budget and been extremely aware of what’s going on with revenue,” he said. “Everyone working on the budget had the foresight to see we were about to hit some hard times.”

The highest bond rating possible is AAA, though Townson said the AA- rating brings Cullman into a high level comparable with several area cities.

“This puts us up with Montgomery, Dothan, Florence, Decatur and Athens,” he said. “We’re very proud.”

At a Monday meeting, the council also:

  • Announced the countywide PALS clean-up has been extended until this weekend.
  • Approved a request from Mary Elizabeth Romine to close a section of First Avenue from 4 p.m. - 9 p.m. for her wedding on Friday, June 25.
  • Approved a request from Mike Mullaney, CHS Class of 1980, to close a portion of Clark Street on Saturday, July 24 from 6 p.m. until 12 a.m. for a class reunion.
  • Approved a request from Linda Killingsworth to host a benefit Poker Run on Saturday, June 5 from 8 a.m. - 8 p.m. at Toby’s Cycles located at 313 Third St., SW. The proceeds will help Monica Cordes with medical bills.
  • Approved a travel advance request from Mr. Jeff Adams, Superintendent of the Waste Water Treatment Plant and Traffic, for two plane tickets to Dallas, Texas in June. Mr. Trey Powers request reimbursement of $311.60 and Mr. David Kreps request reimbursement of $346.30.
  • Approved a payment request from Fire Chief Reinhardt of $16,500 for the annual physical fitness program.
  • Approved a resolution in support of the Cullman Community Concert Association. The association is sponsoring five upcoming concerts.
  • Awarded a herbicide spraying bid to SprayMax, Inc for public works.
  • Awarded a bid for $385 in tree services on Old Hanceville Highway and King Edward Street to Michael’s Tree Service for $385.
  • Awarded bid for tree services on corner of Third Avenue and Arnold Street to Clemmon’s Tree Service in the amount of $500. Townson noted the city has changed its policy recently for tree service work. “Now when we need tree service we just put it out to bid, so that gives every service an equal opportunity,” Townson said.
  • Awarded a bid for tree services on 606 Third Ave NE to Clemmon’s Tree Service in the amount of $300.
  • Recognized Peinhardt Farms for being added to the Alabama Historical Registry.
  •  Recognized emergency personnel for their efforts during the recent rash of storms. “We had personnel all over the county working together and everyone was on full alert,” Townson said.



* Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 225.

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