August 30, 2019
Petaluma City Manager Peggy Flynn announced today that the City has successfully refinanced the outstanding State Revolving Fund Loan that financed construction of the Ellis Creek Water Recycling Facility.
“With interest rates near all-time lows, this refinancing will save the City more than $5.48 million over the next nine years,” said Flynn.
“When added to the savings achieved by a similar action in 2017, the total savings exceed $11 million. Additionally, customers will see a savings in their wastewater bills beginning July 1, 2020.”
Finance Director Corey Garberolio attributed much of the success of the refinancing to the very strong operational and financial management of the wastewater system, which were cited by Standard & Poor’s as key reasons why they upgraded the credit rating on the City’s wastewater bonds to ‘AA+’ which is among the highest possible ratings.
Garberolio also cited the competitive process by which the City sold the bonds, which resulted in nine investment firms submitting bids to buy the bonds, including the very strong winning bid that was submitted by Wells Fargo Bank.
“As stewards of the public trust, we feel an obligation to take advantage of these refinancing opportunities whenever they arise” said Flynn. “The City continues to look for ways to save ratepayers money by seeking and achieving low rates on debt which allows the City to provide reliable services at the lowest possible cost.”
For more information, contact Corey Garberolio (email) 707-778-4357 (phone).