Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Water Authority Wants New Bond Issue

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

Water Authority Wants New Bond Issue

Article excerpt

Plum council is being asked to back a refinancing plan for the municipal Water and Sewage Authority that officials say will save money and avoid rate increases for customers down the road.

Council will likely vote Monday on whether to act as guarantor for the authority to borrow $3 million to $4 million for system improvements, pay off a 14-year-old PennVest loan and restructure its bond issues.

The move would represent "considerable savings" for the authority, borough Solicitor Bruce Dice said.

By acting as guarantor, the borough would face no financial risk but would allow the authority to get better rates, he said.

The plan was proposed by the authority's bond counsel because of low rates right now.

Authority manager Cheryl Stezoski said the authority is carrying a $30 million debt service, so the refinancing plan is only for a portion of that debt.

She said the money would be used to pay off the $535,000 balance on a 1989 PennVest loan used for the Plum Creek sewer project as well as to restructure bonds. …

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