Tampa Bay Water issues revenue bonds to fund Capital Improvement Program (CIP) projects and maintain the current regional drinking water system.
At its Aug. 19 meeting, Tampa Bay Water’s board of directors approved issuing approximately $420 million of new, fixed-interest-rate revenue bonds, Series 2024A, to fund the utility’s capital projects and system improvements. The agency will also issue approximately $150 million of new, fixed-interest rate refunding bonds, Series 2024B and Series 2024C, to refund existing debt and restructure annual debt service to minimize the impact on the uniform rate. The bonds will be priced in September with an anticipated closing date in October 2024.
The Series 2024A bonds will be issued for 30 years, structured over current bonds to minimize impact to the uniform rate, and will include one year of capitalized interest. The debt will be paid from 2025 to 2055.
The Series 2024B bonds will be issued for 20 years with the debt being paid from 2025 to 2045. The Series 2024C bonds will be issued for 9 years with the debt being paid from 2025 to 2034.
In May 2024, the Board approved the CIP expenditures for Fiscal Year 2025 and accepted the comprehensive 10-year Capital Improvement Program. About 41% of the funding for projects in the 10-year Capital Improvement Program will come from funds on hand, joint project agreement funds, grant funds and Southwest Florida Water Management District co-funding; the remaining funding will come from the Series 2024A Bonds and other future bond issuances.
The 2024A bonds will help fund CIP project contracts over the next two years, including funding part of the Tampa Bay Regional Surface Water Treatment Plant expansion and new South Hillsborough Pipeline. The utility anticipates issuing bonds in 2026 for $260 million.
“Our financial advisors and bond counsel analyzed many different bond financing options to determine the best way to approach funding future projects while stabilizing the uniform rate,” said Christina Sackett, Tampa Bay Water’s chief financial officer. “We will continue seeking state and federal grants to help offset the cost of system expansion and renewal and replacement.”
