ROWLAND HEIGHTS, Calif., July 21, 2021 /PRNewswire/ -- Rowland Water District's Board of Directors authorized a bond refinancing plan that will save more than $3.4 million over the next 20 years and help secure long-term financial stability for the district.
The bond refinancing was approved at the Board meeting on Tuesday, July 13.
The savings will be structured to generate nearly $1.9 million once the bond refinancing is completed this fall, with an additional $1.6 million in the 2023 and 2024 fiscal years. The remaining savings will occur each year through 2043, when the refinanced bonds are paid off. The cash flow generated by the move will reduce pension liabilities through the California Public Employees' Retirement System.
"This is an opportunity for us to take advantage of low interest rates and use the savings to benefit our customers in the most effective way possible," said Rowland Water District General Manager Tom Coleman. "When we look at water supplies, we plan and take actions that make the most sense over time. We take the same approach with our finances to protect the interests of our current customers and future generations."
The bonds that will be refinanced helped fund the La Habra Heights County Water District connection, which provided direct access to groundwater and reduced Rowland Water District's reliance on imported water by 20%. Other projects financed through the original bonds included the California Domestic Water Company interconnection project, which provided an additional source to access imported water and improve supply reliability, and the 2008 expansion of the recycled water system.
Since the projects all supported climate-related and environmental projects, they will be marketed as Green Bonds to draw additional interest from investors. The $32.85 million bond offering is expected to be completed in September 2021.
About Rowland Water District
Rowland Water District was formed 65 years ago to provide water service to 200 ranchers and farmers in a rural, agricultural community. Rowland Water currently delivers 14 million gallons of safe drinking water to about 58,000 people every day. The District maintains 150 miles of potable water pipeline and 25 miles of recycled water pipeline to serve 13,500 customer connections across 17.2 square miles in southeast Los Angeles County, including portions of Rowland Heights, Hacienda Heights, La Puente, and the cities of Industry and West Covina.
SOURCE Rowland Water District