By comparing bond ratings from Moody's and Standard & Poor's, two of the three largest bond-rating agencies, the News analyzed the marketability of each entity's debt.

The two agencies use similar credit ratings. A rating of AAA or Aaa is the best, meaning the city's bond is well positioned to be a low risk for investors. The AAA rating is followed by AA or Aa, A and BBB or Baa, depending on the agency.

No local governments in Utah fell below the BBB or Baa rating, which means every rated municipal bond in Utah is suitable for investing.

Some bonds, however, are not rated.

That doesn't mean they're junk, says Laura Lewis, a principal with financial planning firm Lewis, Young, Robertson and Burningham, which serves two-thirds of the top 25 cities in Utah (those with a population of 25,000 or more).

It likely means that it made financial sense to save the cost of buying a rating, she said.

Fiscal philosophies

Utah cities that have abstained from accruing debt cite good cash flow, strong infrastructure and a city council concerned with residents' pocketbooks, said Cottonwood Heights treasurer Gary Harmer.

"Our council has just been very conservative and has not been willing to take on projects that would require debt," Harmer said.

In Herriman, the philosophy is to bond only for construction costs, not for operations and maintenance, said Mayor Lynn Crane. "We want to operate on money we have."

Municipalities such as Sandy believe in balancing debt and cash flow to ensure long-term stability, said finance director Art Hunter.

Sandy's long-term debt-per-capita is $662, which is on the low end of the spectrum. However, Sandy has taken out bonds for multiple redevelopment projects, and its $10 million bond for the Real Salt Lake stadium raised a few eyebrows.

As with many other cities, none of Sandy's debt is from general-obligation bonds. It has all been approved by the City Council.

Lewis said going into debt makes sense for cities that are seeing exponentially rising construction costs. A city trying to save up enough cash for a project could benefit from bonding with a 3 percent or 4 percent interest rate if construction costs are rising 10 percent to 12 percent in a year.

Lewis helps train new mayors and council members at the Utah League of Cities and Towns, and she says many newcomers to local government feel a paranoia about city debt.

But then she asks how many paid cash for their homes. Not many. Most homeowners have or had a mortgage at one time.

"That's how you have to pay for certain large projects," she said.