Residential Services | Gas | Water | Home | Contact Us |
 |
 |
|
9.28.06 M.U.D. sells $96 million in bonds for project The Metropolitan Utilities District board Wednesday approved the sale of $96 million in bonds to help finance M.U.D.'s new water treatment plant and well field. The tax-exempt, 25-year bonds were auctioned off via the Internet by the district's financial adviser, D.A. Davidson of Omaha. Citigroup Global Markets provided the winning bid with an interest rate offer of 4.3751 percent. As a result, MUD anticipates paying $71.91 million in interest on the bonds. Five companies submitted bids. M.U.D. President Tom Wurtz said the utility was pleased by the competition for its bonds and the interest rate it received. This is the second and, MUD officials think, final time the utility will have to issue bonds to cover costs of the treatment plan and well field, which are being built in Douglas and Saunders Counties. In February, M.U.D. issued $100 million in bonds at an interest rate of 4.3393 percent. Interest rate expense on that debt is $69.93 million. The new plant and well field will expand M.U.D. capacity to provide water by more than 40 percent. Total cost of the project is expected to be $352 million. The plant, scheduled to come on line in 2008, is projected to meet the increase in demand for 50 to 60 years. The district has been increasing water rates and saving money to help cover the cost of the plant and well field. Those savings, plus future revenue,will cover the rest of the project's costs.
|
|
