Truckee Meadows Water Authority (TMWA) has refinanced $33 million in debt, saving its customers more than $300,000 a year for the next 21 years. Savings to TMWA over the life of the bonds, 21 years, will be $6.5 million.
In advance of the bond sale, All three credit-rating agencies–Fitch Ratings, Standard & Poors (S&P) and Moody’s– rated TMWA with a stable or positive financial outlook.
Jeff Tissier, TMWA’s chief financial officer, said that the total savings to TMWA’s customers related to the refinancing over the life of the outstanding bonds means a reduction in principal of $4.3 million and $2.2 million less in interest expense.
“It was an excellent deal,” he said. “And because the interest rates on these kinds of refinancing efforts have been climbing lately, TMWA’s timing was very good.”
All three agencies noted that the strong financial performance is particularly noteworthy because of the severe drought conditions in the region.
Andrew Ward and Shannon Groff, Fitch Ratings analysts, said that “the diversity of TMWA’s water supply has improved through its merger with the Washoe County water utility and South Truckee Meadows General Improvement District at the end of last year.”
Ward and Groff also said that TMWA manages its finances very conservatively.
SOURCE: TMWA.
