The city of Magnolia has received a high rating from Standard & Poor's ratings service, which helped the city save money on its recent sale of bonds, City Administrator Paul Mendes said.

Standard & Poor, one of the top three rating agencies on Wall Street, gave the city an A+ bond rating, which means it recognizes the city's credit worthiness. A high rating is beneficial to the city because it gets a better interest rate when it sells bonds. As a result of the high ranking, the city saved $1.6 million on its recent sale of bonds, Mendes said.

"Over the life of these bonds the city will save a substantial amount," he said. "I am very proud of the fact the city of Magnolia has once again been recognized for its sound fiscal management."

The city sold $6.06 million in bonds, including an existing 30-year, $4.8 million bond for wastewater and water improvements that was approved in 2006, Mendes said.

When determining a city's rating, the ratings reflect the assessment of factors, such as the city's economy, housing market, location, employment opportunities and major employers within the city, according to Standard & Poor. Anytime the city sells bonds, it gets rated by Standard & Poor to determine the city's latest financial situation.

"This recent bond rating illustrates the city's strong financial management," Mayor Todd Kana said. "By putting public safety first and managing our budget in a fiscally responsible manner, we are making progress with our water system and rebuilding our aging infrastructure. I am committed to having our city ready for the growth that is coming very soon."

Magnolia City Council

Meets at 7 p.m. on the second Tuesday of every month. Its next meeting is scheduled for May 13.1811 Buddy Riley Blvd., Magnolia