FOR IMMEDIATE RELEASE
CONTACT: Doug Baxter, Principal Civil Engineer, (530) 661-5975
January 3, 2014
State Commits to Provide Low-Interest Financing for Regional Surface Water Project
WOODLAND, CA – The new year started off well for the City with an offer from the California Department of Public Health (CDPH) to provide extremely low-interest financing for the City’s share of construction costs for the regional surface water project. In letters to the City, the CDPH committed to financing the City’s estimated local and regional construction costs of $143 million at a 1.7875 percent interest rate. Interest rates for traditional utility revenue bond financing are currently around 4.5 percent.
“This sets us up to finance Woodland’s share of the project at very favorable terms, compared to traditional utility revenue bond financing, and suggests our ability to save more than $100 million in overall financing costs for Woodland ratepayers over the long term,” said City Manager Paul Navazio.
The City has 60 days to respond to the CDPH offer. In the meantime, it will continue to analyze all options for reducing project costs. According to Navazio, the City will not finalize a decision on how to finance the project until the possibility of other low-interest loan and grant applications have been fully considered.
“We are very optimistic about our financing options,” he said. “The commitment from the Department of Public Health bodes well for our ongoing efforts to build the regional surface water project at the lowest possible cost to the City and its ratepayers.”
For more information, please contact Doug Baxter, Principal Civil Engineer at 530-661-5975.