The San Diego County Water Authority on Wednesday successfully completed bond sales of $627 million to provide continued funding for the Water Authority’s Capital Improvement Program (CIP). High investor demand for the bonds helped the Water Authority secure very low interest rates that will save its ratepayers over $50 million in financing costs on a present value basis over the life of the bonds.
In response to reduced short-term water demand projections and changing economic circumstances, the San Diego County Water Authority Board of Directors today approved deferring the construction of 11 infrastructure projects to July 2014 or later. This action postpones $82 million in costs and will help moderate Water Authority rate increases in 2012 and 2013.
The board also directed staff to evaluate three other projects, totaling $68 million, for potential deferral. Staff will return to the board in February with a recommendation.
The San Diego County Water Authority Board of Directors today approved a $1.42 billion budget to fund water purchases, capital expenditures, debt service and operating expenses from July 1, 2011 through June 30, 2013.
In response to lowered short-term water demand forecasts, the San Diego County Water Authority Board of Directors has deferred three capital projects totaling $68 million until at least July 2014. Thursday’s Board action, combined with 11 projects deferred in January 2011, postpones $150 million in capital expenditures and is projected to reduce wholesale rate increases from capital projects by $17 to $22 per acre-foot during the deferral period.
The San Diego County Water Authority is working with state regulators to certify the Claude “Bud” Lewis Carlsbad Desalination Plant as a drought-resilient local supply source that will reduce state-mandated water-use targets across the region.