A recent push to pay off its pension debt, refinance other debts and make infrastructure improvements could save the Mesa Water District and its nearly 100,000 customers almost $9 million over the next decade, the agency said in a statement released last week.
By refinancing at a 1.6 percent interest rate – the previous rate was 4.8 percent – Mesa Water will be able to pay off $21.6 million in debt in 10 years, the June 22 release said.
“Our strong financial performance and AAA credit rating allowed the district to obtain an incredibly low interest rate,” said General Manager Paul E. Shoenberger.
A pension trust will be established to set aside funds for future payments to the California Public Employee Retirement System. The district pension debt is estimated at $6.6 million, said Shannon Widor, Mesa Water public affairs manager.
The trust will allow the district to reduce or eliminate large fluctuations in CalPERS contributions from the city and gives the water district more control over its assets, Widor said.
In addition, the district has secured an additional $13 million that will go toward its five-year plan to make water system improvements, including automation of water wells, water pipeline testing and maintenance projects.
“This positions Mesa Water to efficiently manage its capital improvement priorities and ensure our customers continue enjoying safe, high-quality water,” said General Manager Paul E. Shoenberger.
Mesa Water District provides water to customers in Costa Mesa, parts of Newport Beach and a portion of unincorporated Orange County.
