Successful FPUD bond sale will save ratepayers $1.6 million
Last updated 1/29/2021 at 10:15am
FALLBROOK – In a move that will save Fallbrook ratepayers $1.6 million over the next 15 years, the Fallbrook Public Utility District earlier this month executed a successful bond sale, which will reduce the cost for upgrades made to the district’s wastewater reclamation plant in 2016.
“Because of our good credit rating and standing on Wall Street, we were able to take advantage of lower interest rates through the sale of revenue bonds,” said FPUD general manager Jack Bebee. “Our ability to execute this transaction is a result of our board’s ongoing efforts to enhance our financial condition and the transparency of both our budget and annual financial reporting.”
By paying off the loan from the California State Water Resources Control Board with lower-interest bonds, FPUD will save ratepayers approximately $115,000 a year, which will reduce future rate increases.
In its pre-publication notice about the transaction, Standard & Poor’s cited FPUD’s “strong financial management practices and policies” and “strong operational management practices and policies.” Bebee credited the district’s underwriter, Stifel, with doing an excellent job pricing and selling the bonds to a diverse group of retail and institutional investors.
FPUD will pay back the $19.9 million in revenue bonds without extending the original term of the loan from CSWRCB.
Submitted by Fallbrook Public Utility District.