$8.2M Savings: Central San Refinances Bonds

CONTRA COSTA COUNTY — Central Contra Costa Sanitary District (Central San) is refinancing bonds issued in 2009, resulting in a savings of $8.2 million in interest costs over the next 11 years.

The new bonds received Standard & Poor’s "AAA" rating.

According to a release from Central San, "The savings will be used to fund critical infrastructure improvements identified in a 20-year master plan. Using a combination of pay-as-you-go and debt-financing, Central San continues to fund extensive infrastructure improvements that will upgrade the regional treatment plant, service and repair pumping stations, and replace several miles of sewer pipe each year to provide sewer service reliability for decades to come."

In 2018, the Board of Directors established a trust for funding employee retirement obligations beyond the required annual contributions, adding $5.4 million to the trust. The agency has also made contributions to further fund other post-employment benefit (OPEB) commitments. The moves helped snag the "AAA" rating, offsetting the moves by management.

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