Move will save ratepayers millions
SAN MARCOS — Coming off the heels of good news from credit rating agencies, Vallecitos Water District announced it has refinanced its bond debt and saved ratepayers $3.47 million in the process.
The district took advantage of historically low rates for tax-exempt municipal bonds and its strong credit rating to refinance the district’s $45.4 million in bond debt.
The district is scheduled to pay down half of that debt in the next 10 years and currently has no plans to take on any additional debt.
“Refinancing these bonds allows us to save millions of dollars in interest over the life of the bonds. That’s a significant step in ensuring a sustainable financial future while being responsible to our ratepayers,” said VWD Assistant General Manager Tom Scaglione.
The refinanced debt was preceded by the district’s securing of a credit-rating upgrade from Standard & Poor’s, which boosted the district’s rating from AA to AA+. Fitch Ratings also affirmed the district’s AA+ rating.