Short-Term Debt

The Water Authority currently has two forms of short-term debt, Tax-Exempt Commercial Paper (TECP) and a five-year fixed-rate bond.

The Water Authority established its TECP Program in 1995. Commercial paper is a form of variable-rate debt, and is issued with maturities of 1 to 270 days. When the commercial paper matures, it is rolled over to new investors by the Water Authority’s commercial paper dealers. The Water Authority has authorized the issuance of up to $460,000,000 of TECP, with $360,000,000 issued and outstanding. The TECP has been issued in four series – Series 1 ($110,000,000), Series 4 ($100,000,000), Series 5 ($100,000,000), and Series 6 ($50,000,000). Series 1 has been issued in various tranches, beginning in 1995; Series 4, 5, and 6 were issued in 2011.  Each series is supported with a bank “revolving credit and term loan agreements”.  As of June 30, 2011, no advances have been made under any of the revolving credit and term loan agreements.

In July 2011, the Water Authority issued $86.63 million in five-year fixed-rate bonds. The bonds mature July 1, 2016.

Commercial Paper Short-Term Ratings         Fitch         S&P         Moody’s

                                                                                  F1+          A1+          P1