Zone 7 sells water revenue bonds to fund projects

Officials from the Zone 7 Water Agency recently announced the successful sale of water revenue bonds that would generate $71.4 million to be used for the agency's upcoming ozone filtration projects and to refinance the debt from a water storage program approved over 10 years ago.

The bonds from the Livermore Valley Water Financing Authority sold had just received high credit ratings: an "AA+" long-term rating from Standard & Poor's Global Ratings and a "AA" rating from Fitch Ratings.

"Zone 7 is extremely happy with the results of the bond sale which out-performed at least one recent bond sale from a similar public agency in California and will allow Zone 7 to finance the much-needed ozone treatment projects as well as realize significant cost savings related to the Cawelo capital repayment," officials wrote in a statement.

The agency sold $64 million in 2018 Series A bonds that will generate just under $71.4 million in revenues with a true interest rate of 3.54%.

Of the bonds' proceeds, $57 million will go toward the ozone filtration projects at the Del Valle and Patterson Pass water treatment plants. The purpose of the projects is to enhance water quality by disinfecting and treating for cyanotoxins, which were discovered at Lake Del Valle in 2015.

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