Ridgeline Municipal Strategies, LLC served as a municipal advisor to the Tehachapi-Cummings County Water District ("District") on a $10,925,000 Water Revenue Certificates of Participation issuance ("Financing"). The Financing was structured as a public sale and provided $12,000,000 in proceeds for the District to fund the replacement of eight pump plant engines ("Project").
The District was established in 1965 and currently serves an area of approximately 416 square miles with an estimated population of 37,000 people. It provides water to the City of Tehachapi and unincorporated Kern County communities of Bear Valley, Stallion Springs, and Golden Hills.
The District delivers water from the California State Water Project on the Central Valley floor up to the community of Tehachapi located at almost 4,000 feet above sea level. Four pump plants and a 31-mile water line are required to get the water up the hill.
Ridgeline provided the following services to the District:
The District retained Ridgeline to provide municipal advisory services on the Financing. Ridgeline helped the District develop a financing strategy for the $12 million pump plant engine replacement project. After considering iBank, private placement, and public sale financing alternatives, the public sale was selected due to the optimal cost and timing alignment. The Financing was structured as certificates of participation and received an underlying A+ rating from S&P Global Ratings. Bond insurance from Build America Mutual ("BAM") increased the rating to AA, helping the District reduce its interest costs.
The 15-year term of the Financing allows the District ample time to complete the Project and minimize interest costs for better utilization of taxpayer funds.
Ridgeline Municipal Strategies, LLC is an independent registered municipal advisory and financial consulting firm assisting cities and special districts with financial planning and financing for infrastructure, facilities, and equipment.
Contact Ridgeline to discuss your financing needs.
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