Water agency refinances bond, avoids hike

A vote by the Sweetwater Authority to refinance its bond debt has saved the agency’s ratepayers roughly $2.7 million as well as avoided a residential water rate hike, for now, said the water agency’s finance director.

A competitive bond sale was held in July and sold to Fidelity Capital Markets, the lowest bidder, resulting in .087 percent interest rate for the new bonds, according to water officials. They said bond debt will be paid off in 2022.

The bond refinancing reduced the water agency’s annual debt payment from about $3.9 million to $3 million, producing a savings of $900,000 a year.

Rich Stevenson, the agency’s finance director, said the savings, along with cost-cutting measures, such as no across-the board salary increases and a temporary reduction in staff, allowed for the authority and the board to approve this year’s budget without a rate increase.

The Governing Board on Aug. 29 will conduct a public hearing at 505 Garrett Ave. in Chula Vista to consider rate changes for its commercial and public agency customers at 6 p.m. If there is no significant protest, the rate change for commercial and public agency customers will go into effect Sept. 1.

There will be no fees imposed on other customers at this time.

“The bond refinancing action taken by Sweetwater Authority is a necessary step in the right direction and the SWA staff and board should be congratulated,” said Bonita resident and Sweetwater Authority ratepayer Mike Seiler. “It is also what our Sweetwater Authority Rate Payers Association Board of Directors has been asking them to do for several years now.”

Sweetwater Authority is a joint powers public agency that provides public water service to roughly 191,500 residents, including Bonita, western and central Chula Vista and National City.

For more information about proposed water service fees contact customer service at (619) 420-1413 or visit: https://www.sweetwater.org/.