Anaheim : City to Refinance Utility Bonds at Lower Interest

Anaheim is expected to save an average of $542,000 annually during the next two decades because of the City Council’s decision this week to refinance water and electric revenue bonds.

Council members took advantage of decreasing interest rates and refunded portions of a current outstanding bond issue, said Ray Merchant, a community specialist with the city’s Public Utilities Department.

Although the changes do not mean that customers can expect their electric or water bills to go down, it does means there is “less pressure to increase,” Merchant said.

By approving the sale of $136.4 million in water and electric bonds, the city will save about $11.9 million over the life of the bonds, Merchant said.

For the water bond issue, the new interest rate of 7.006% is the lowest true interest cost of any long-term public power issue over the past seven years in the United States, Merchant said. The new interest rate for the water bond is 7.048%.