Lehi City News
Lehi City earns top credit ratings from Moody’s and Fitch
LEHI, UT – October 13, 2025 – According to a release from Lehi City, it has earned top credit ratings from two of the nation’s leading financial rating agencies ahead of its upcoming sale of water revenue bonds. Moody’s Investors Service assigned a rating of Aa2, and Fitch Ratings assigned an AA+ rating. Both reflect strong confidence in Lehi’s financial stability and management.
On August 26, 2025, the Lehi City Council adopted a resolution authorizing the issuance of up to $17 million in Water Revenue Bonds to finance a new public works facility and make key improvements to the city’s culinary water and pressurized irrigation systems. The bonds were authorized to bear interest rates of up to 5.5% per year; however, due to the city’s credit ratings and financial position, Lehi successfully sold the bonds at a rate below 4%, realizing significant savings in interest expense.
Funding infrastructure by the issuance of bonds spreads the cost of the improvements over the life of the project. This benefits existing residents who have funded most of the cost of existing infrastructure. Bonding spreads out costs so future Lehi residents will participate in funding these facilities, which benefits them and all residents. The low interest rates will save money for both the City and utility ratepayers, while allowing essential infrastructure to move forward without overburdening costs to current residents.
“This recognition confirms the City’s careful financial planning and commitment to long-term stability,” said Lehi Mayor Mark Johnson. “Lehi continues to grow rapidly, but we’re doing it responsibly by investing in essential infrastructure while maintaining strong reserves and low debt. These ratings reflect the trust our residents can have in how we manage their resources.”
Fitch’s report cited Lehi’s “very strong financial profile,” noting affordable utility rates, strong household income levels, low debt, and healthy reserves. Moody’s similarly highlighted the City’s “robust cash and coverage,” “low debt burden,” and “capable management team that budgets conservatively and maintains a sound financial position.”
Lehi City Financial Director Dean Lundell explained that independent credit ratings are a key part of transparent municipal financing.
“As a growing city, Lehi has increasing infrastructure needs. Issuing bonds is one method the city uses to keep up with these demands,” Lundell said. “Acquiring a credit rating is a critical step in the process of issuing bonds. These independent ratings allow the bond purchasers to trust the strong financial position of the city and are necessary to issue bonds at the lowest possible interest rates.”
