San Joaquin County recently completed a $7.75 million bond refinancing package that covers one portion of the county.
County Service Area 31 will benefit from the bond refinancing as it relates to a sewer improvement project that was constructed in 2006. The refinancing will save, on average, $160,000 per year over the next 20 years, according to the County.
“We are always mindful of watching our bottom line to ensure the best use of ratepayer dollars and making certain that our budgets are sustainable,” said Bob Elliot, Chair of the San Joaquin County Board of Supervisors, in a statement. “As a result, we took advantage of favorable market conditions to refinance this debt and achieve tremendous savings.”
According to the County, the bonds were issued in 2007 to finance sewer system improvements for Flag City, an area adjacent to Highway 12 and Interstate 5, west of Lodi. County staff paid off the existing bonds and loan early by issuing new bonds. This helped to lower District 31’s debt service cost. The transaction is scheduled to close Feb. 27.
Chuck Winn, the County Supervisor who represents the area, lauded staffers who found a way to reduce the costs.
“This refinancing is a great example of how our County staff always searches for ways to significantly reduce costs and avoid future rate increases for our customers,” Winn said. “We work extremely hard to remain financially healthy without raising rates to our customers, and we will continue to do so as future opportunities arise.”