Short take: Regional water projects financed with bonds
By: Anne Kreuger

SAN DIEGO: Bonds worth $627 million were sold last week to finance the San Diego County Water Authority’s $3.77 billion capital improvement program.

Authority officials said low interest rates ranging between 1.64 percent and 4.08 percent will mean a savings of $50 million on financing costs over the life of the bonds, ranging from four to 40 years.

The bond sale had been scheduled to take place over two days, but was completed in three hours Wednesday. The sale included $99 million in tax-exempt serial bonds and $528 million in Build America Bonds. The Build America Bonds, part of the federal stimulus program, provide a direct federal subsidy payment for a portion of the borrowing costs.

Among the construction projects under way by the water authority is a $568 million project to raise the San Vicente Dam in Lakeside by 117 feet, providing additional storage for water in case of emergency or continued drought.