Bucks Water & Sewer Issues Up To $200M In Bonds For Capital Projects

WARRINGTON TOWNSHIP, PA — The Bucks County Water & Sewer Authority on Dec. 15 issued up to $200 million in bonds to fund wastewaster capital improvements after earning an A+ long term bond rating from S&P Global.

The proceeds will be used to fund certain wastewater capital improvements, including the expansion and upgrade of several wastewater treatment plants as well as to make repairs required by the initial phase of BCWSA’s recent consent decree with the U.S. Department of
Justice (USDOJ). The proceeds will also refund the authority’s existing bonds and sewer debt.

“The favorable bond rating is due in part to BCWSA’s exceptional operational management practices and policies,” said John Cordisco, BCWSA Board Chairman. “I credit the entire staff for their exemplary work to achieve this rating for the authority. We have a lot of work
ahead of us as stipulated by the consent decree, along with many major infrastructure projects that our outstanding team is well qualified to manage.”

The December 2021 decree with the USDOJ requires BCWSA to dedicate considerable resources to evaluate and upgrade its sewer system, beginning with sending cameras into collection lines to identify problems for remediation. Once the problem areas are identified, BCWSA will begin to make immediate repairs and upgrades.

“We are committed to our customers and communities we serve to pursue any and all revenue opportunities, such as bonds, to fulfill the requirements of the consent decree,” said Cordisco. “This bond issue will allow us to do the work for the betterment of our system and
provide quality and environmentally safe measures for the future.”

S&P also issued a stable outlook for BCWSA’s financial performance based on historical results and conservative projections. The bond rating agency also affirmed BCWSA’s A+ rating on the authority’s existing sewer revenue bonds.

According to S&P, “Currently, the system has affordable rates and above-average incomes, which we view as positive given the potential for future rate increases.”

Recently, BCWSA was able to price bonds for these projects at a rate slightly below four percent.

For more information, visit BCWSA.net