January 27, 2012 > ACWD funds infrastructure with bond sale
ACWD funds infrastructure with bond sale
Submitted By ACWD
The Alameda County Water District announced today that it has sold $45 million in revenue bonds to help fund critical infrastructure projects and refinance existing debt at a lower interest rate. The bonds will save the District millions of dollars and help speed the completion of seismic reliability projects, fire flow projects, and water supply reliability projects.
"ACWD's AAA bond rating paved the way for a very successful sale," said John Weed, ACWD Board President. "The District's commitment to financial integrity has resulted in our ability to obtain financing at a 3.22% interest rate - one of the lowest rates on the market. This will allow us to more quickly complete projects that will help to keep the water system functioning in the event of a natural disaster."
The bonds will be used on a number of fronts:
* Seismic reliability projects, which will help to minimize water service disruptions in the event of an earthquake.
* Fire flow projects, which will help to improve fire protection services in the Tri-City area.
* Water supply reliability projects, which will help to ensure an uninterrupted flow of water to Tri-City residents and businesses.
* Water quality projects, which will help to maintain the high quality of the Tri-City's water supply.
"Our customers will benefit from this bond sale in three significant ways," said ACWD Board member Paul Sethy. "First, projects that will help to keep the water flowing after an earthquake and ensure adequate water pressure to fight fires will be completed in a more timely manner. Second, paying these bonds off over the next 30 years will help to moderate future rate increases and eliminate 'rate shock.' And third, the low interest rate we obtained will save our ratepayers money over the long haul."
Approximately half of the issuance will be used to help fund infrastructure projects while the other half will be used to refinance existing debt. Refinancing at the 3.22% interest rate will save the District, and its customers, approximately $7 million over the life of the bond.
For more information, please visit www.acwd.org.