Bond Refinancing Will Save Customers $55 Million
San Antonio Water System recently took advantage of low interest rates to refinance outstanding debt for savings. Since October 2016, SAWS has refinanced more than $300 million of its water system revenue bonds, saving ratepayers more than $55 million over the next 22 years.
The savings come from bonds originally issued in 2007 and 2009 to fund capital improvements.
“These savings will help with future budgets, and should have a positive impact on future rate adjustment requests,” said Doug Evanson, senior vice president & chief financial officer.
The bond refinancings are part of the utility’s ongoing efforts to minimize costs and ensure fiscal stability. Much like refinancing a home mortgage, this effort allows SAWS to secure a lower interest rate and thus lower interest payments on outstanding debt.
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