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Northern Kentucky Water District announces revenue bond sale; will save district more than $3.1 million

The Northern Kentucky Water District has announced $27,730,000 in refunding revenue bonds was sold on November 30.

The proceeds from the sale of the bonds will be used to refinance an outstanding bond issue for the District and will result in debt service savings of over $3,149,000 over the life of the new bond. The sale was approved by the District’s Board of Commissioners at the September 16 board meeting.

“The District continually reviews our outstanding financial obligations to determine if there are any opportunities to realize debt service savings for the system. Our continued fiscal discipline and recently affirmed Aa2 credit rating from Moody’s Investor’s Service allowed us to take advantage of lower interest rates in the capital markets,” said Ron Lovan, President / CEO of Northern Kentucky Water.

Revenue bond refunding allows the District to save ratepayers money by receiving lower interest rates on borrowing used to improve the District’s infrastructure.

“This record-low interest rate should save the ratepayer a considerable amount of money in interest expense over the next six years,” said Lindsey Rechtin, the District’s Incoming President/CEO and Vice President of Finance and Support Services.

The District uses bonds to fund necessary projects that help maintain existing infrastructure, as well as projects that enhance dependability and functionality.

“The low-interest rate is a reflection of the District’s strong credit rating,” said RSA Managing Partner Joe Lakofka. “This is another example of how RSA works closely with government and public service agencies to manage their finances and save ratepayers money.”

“The District has been working diligently over the past several years to strategically manage our debt portfolio, coupled with a long-term rate management and project management mindset, to place the District in a strong financial position,” Rechtin said.

Northern Kentucky Water District

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