Queen Creek Town Council approves water infrastructure financing
The Queen Creek Town Council recently approved a resolution amending two Water Infrastructure Finance Authority loans and financing two additional projects.
These actions will accomplish a number of strategic financial objectives, which include creating rate capacity, generating cash for reserves and project funding, positioning the utility for rated, open-market bond issuances, improving the revenues to debt service coverage ratio and matching the asset’s useful life with the term of the associated debt, according to a release.
The two amendments update the loans to acquire Queen Creek Water Co. and H2O Water Co. The amendments extend the terms of each loan to 30 years, which better match the asset’s useful life with the term of the debt. The amendments maintain the original call dates, and expand the revenues pledged to repay the debt.
