Truckee Meadows Water Authority Successfully Refinances Bonds Produces $760,000 in Annual Interest Savings
Source: Truckee Meadows Water Authority
“This equates to one percent of customer rates, saving a total of $18.2 million over the life of the refinancing,” TMWA Board Chairman, Mike Carrigan, said. “We had to make a lot of tough decisions along the way, but this is just another phase of a well-orchestrated, long-term financial plan to stabilize our customer rates,” he added. The financial plan was approved by the TMWA Board in August, 2003. Adding the May 2005 bond refinancing savings, this amounts to a total of more than $1.1 million in annual interest savings that will serve to stabilize customer rates against the rising costs of goods and services to the utility. The refinanced bonds were original acquisition bonds issued to acquire the water system in 2001.
The refunding savings were made possible, in part, by TMWA’s recent bond rating upgrade.
“Standard & Poor’s (S&P) recently raised our bond rating from A to A+, which affirms that TMWA is on the right track with implementation of the Board-approved financial plans,” TMWA Chief Financial Officer, Jeff Tissier, said. The ratings apply to the current bond issue, as well as all prior financings.
According to S&P, “The raised ratings reflect the Authority’s consistently strong financial performance.” (click on S&P release below for more detail.) Moody’s and Fitch rating agencies re-affirmed their A1 (A+) and A ratings respectively. Fitch explained that TMWA is well managed and serves a region with solid economic underpinnings. For more information about TMWA’s bonds contact Chief Financial Officer, Jeff Tissier, at (775) 834-8048. For general TMWA information, log on to www.tmh20.com or call (775) 834-8080.
Contact:
Jennifer Sanzi 775-829-2810 jennifer@o-apr.com