City refinances sewer bonds, gains $1.8 M for new projects

Bills

The city saved $1.8 million by refinancing a set of bonds used
to finance the city and region’s sewer systems, according to the
city. It will use this money to fund unspecified projects that were
cut due to inadequate funding.
The city saved $1.8 million by refinancing a set of bonds used to finance the city and region’s sewer systems, according to the city. It will use this money to build a pipeline to the Pajaro River, a project that had been cut due to insufficient funding.

The refinanced bonds borrow money to pay for the city’s debt in funding the South County Regional Wastewater Authority, a joint agency with the City of Morgan Hill that manages sewer issues in the area, according to the city. The new interest rate on the bonds is 2.9 percent, down from 4.85 percent rate.

The lower rate will provide the city with $1.8 million that it will use to fund a pipeline that will transport treated wastewater into the Pajaro River, City Finance Director Christina Turner said.

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