Lakehaven Water and Sewer District offices in Federal Way. File photo

Lakehaven Water & Sewer District to issue bonds with AAA rating

The District received the highest financial rating attainable earlier this month.

Lakehaven Water & Sewer District is issuing $71.63 million of water and sewer revenue bonds Wednesday, Sept. 29 to finance ongoing and future capital improvement projects necessary to ensure the efficient and reliable operation of the water and sewer utilities for decades to come.

As part of the bond financing process, the District applied for a bond rating from S&P Global Ratings, a national rating agency that evaluates the creditworthiness of public and private bond issuers.

Following a presentation of the District’s financial and management practices to S&P analysts on Sept. 7, the District was given a rating of “AAA” — the highest financial rating attainable by a municipal issuer.

“The District received the highest bond rating of AAA, a great accomplishment for the District and its ratepayers,” said General Manager John Bowman. “This AAA rating reflects that the District is well-managed and has very strong financial policies and practices in place for the benefit of our ratepayers. Higher ratings translate to lower interest costs, which will save a significant amount of money for the District over the life of the bonds.”

Few municipal utilities in Washington have achieved the high rating, said Board President Ron Nowicki.

“It reflects the sound management of the utility systems and the careful financial and infrastructure planning that has been undertaken over many years by board and staff to ensure that the District is in the best shape possible to provide dependable and cost effective service to our customers,” Nowicki said. “Our staff and consultants have worked very hard on this process and it has certainly paid off.”

During the Sept. 7 conference call with S&P, the presentation team provided information about the District and answered questions from the analysts that covered topics of the District’s management and financial practices, economic growth projections, and long-term infrastructure planning. The team included General Manager John Bowman, General Counsel Steve Pritchett, Director of Finance & Information Systems Morgan Dennis, Accounting Manager Tom Drake, FCS Group (rate consultants), and Senior Vice President of D.A. Davidson & C and bond underwriter Jim Nelson.

The water and sewer revenue bonds were priced on Sept. 14 by D.A. Davidson & Co.

Due to interest from multiple investor groups, the bonds were able to be priced at favorable interest rates, said Nelson.

These bonds, financed over 25 years, the bonds achieved a net interest cost of 2.22% — near the historic lows for municipal bonds with these maturities, Nelson added.

The investor premium the District will receive means that the $71.63 million bond sale will yield an $85 million deposit to the District’s construction fund.


Talk to us

Please share your story tips by emailing editor@federalwaymirror.com.

To share your opinion for publication, submit a letter through our website https://www.federalwaymirror.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.

More in News

Tsr
Jersey Mike’s Subs opening Federal Way store Oct. 27

The sub sandwich shop is hosting a grand opening celebration and fundraiser supporting local schools Oct. 27-31.

Luke Dalrymple. Courtesy photo
Federal Way Mirror Male Athlete of the Week for Oct. 22: Luke Dalrymple

Decatur senior won boys tennis doubles NPSL 4A championship, advancing to district tournament.

Laura Belvin, left, and Sheley Anderson. Courtesy photos
Q&A: Lakehaven Water & Sewer District Board of Commissioners Pos. 4 candidates

Incumbent Laura Belvin faces challenger Sheley Anderson.

Bill Fuller, courtesy photo
Q&A: South King Fire & Rescue Commissioner Pos. 2 candidates

Incumbent Bill Fuller is challenged by Julian Martinez

Geographic dispersion of Washington State Patrol commissioned personnel who lost their jobs Oct. 18. (Washington State Patrol)
Rather than get vaccine, nearly 1,900 state workers lose jobs

Exactly how many people will be out of work for ignoring Gov.… Continue reading

Executive Director Amanda Miller outside of the South King Tool Library (1700 S. 340th St. in Federal Way). Courtesy photo
South King Tool Library wins U.S. EPA grant for sustainable community work

The tool library is one of seven grant recipients.

File photo
Student brings loaded gun to high school | Police blotter

Following is a sample from the Federal Way police log Oct. 13-19.

Most Read