Loan Refinancing Saves $262,000
12/15/2011
The Eagle River Water & Sanitation District Water Subdistrict refinanced a 2002 water resources loan by issuing $2.9 million of new Water Refunding Bonds, Series 2011. As a result, Customer and Financial Services Director Becky Bultemeier said the taxpayers of the water subdistrict will save nearly $262,000 in interest payments over the next 11 years.
The water subdistrict is the legal entity providing water service to customers from East Vail to Dowd Junction.
The current low interest rate environment allowed the water subdistrict to refinance at an average net cost of 2.4 percent; achieving an 8 percent net present value savings over the old loan, according to Bultemeier.
Standard & Poor’s assigned its ‘A+’ rating to the bonds, noting the subdistrict’s “favorable service area economy” and “historically conservative budget assumptions and overall good water system financial performance” in its ratings report.
The bond sale closed December 15; Bultemeier noted its success was due in part to buyers wanting bonds from well-managed local government.
For more information, contact Bultemeier at 970-477-5442.