San Diego Mayor Jerry Sanders announced today that the city will conduct its first public bond offering in more than five years.
The city is refinancing water bonds issued in 2007 through a private placement, when the city was blocked from the municipal bond market after failing to properly disclose its pension liabilities. A series of steps have led the major credit-rating agencies to recently upgrade the status of the city’s debt.
The water bonds, which financed upgrades to the city’s water system infrastructure, will be repaid by the city’s water utility fund — not by the general fund, as would be the case with a planned infrastructure bond I wrote about yesterday.
Sanders’ press release about the $64 million water bond issue is available here.