The Northwestern Water and Sewer District has again earned a high bond rating from Moody’s Investors Service. Bond ratings are a method of evaluating relative credit risk and are issued before a city, county, state or other public body can issue bonds to finance major capital projects.
The Aa3 rating lets the district borrow at lower interest rates, potentially saving millions of dollars in borrowing costs. The Northwestern Water & Sewer District issues bonds to finance its capital projects such as water reclamation facilities, waterline replacement projects and various sewer line improvements.
“Water and sewer authorities and districts are measured in many ways,” said District President, Jerry Greiner. “It’s rewarding to have this national agency recognize the district’s creditworthiness with this rating. This is the result of the district’s long-term ability to run efficiently and effectively with an emphasis on sound financial management.”
Revenue rated bonds are repaid over time through the district rates, which are funded by 19,800 customers. The district also has special assessment bonds, which are repaid by assessing homeowners and businesses in need of utility service, such as a new water or sewer line.
