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Commission looks at water bonds

Lorna McDaniel

County commissioners will hear testimony and possibly take action Thursday on a proposal to sell bonds to finance improvements to Valley water systems and refinance other outstanding water project bond debt.

If approved the bonds will be sold for $5,000 or multiples thereof and will mature in 20 years.

Anne Henderson, accountant for the county comptroller, said the interest rate of the bonds will not be known until issued.

She said one proposal calls for the county’s intent to issue up to $3 million in bonds with the capital going to fund the Mountain View/ Airport water systems.

Revenue to pay off these bonds would come from the pledged revenues from the Valley water systems. They would be additionally secured through the possibility of the levy of ad valorem taxes.

Henderson said by having the security of ad valorem tax collection, the county is able to issue general obligation bonds and get a better interest on them.

Another bond proposal for $1.75 million would go to refund water bonds issued in 1987 and 1992.

Henderson said the refund costs money, but will save the county money in the long run.

“The reason is because the market conditions now provide a better interest rate than when they were issued,” she said. “The new bonds will have a lower interest rate than the old bonds.

Repayment of the new bonds would also come from a revenue pledge from the Lake water systems with the possibility of collection of ad valorem taxes.

The water bonds are scheduled for hearings beginning at 1:30 p.m. at the County Administration Building in Stateline at the corner of Highway 50 and Kingsbury Grade.

Other topics, including discussion and possible action on legislative items and water systems in the Valley, will be heard after the dinner break around 6 p.m. at the County Administration Building, 1616 Eight St., Minden.