Last month, the Pagosa Area Water and Sanitation District (PAWSD) refinanced its 2006 enterprise revenue and improvement bonds through the issuance of series 2015 enterprise revenue refunding bonds. The refinancing is slated to save the district $528,000 in interest payments over the next nine years.
According to Assistant Manager Shellie Peterson, PAWSD took advantage of interest rates that have dipped to historic lows to refinance the bonds, which total $5.26 million. With the refinancing, PAWSD will be paying an average true interest cost of just under 1.94 percent.
In addition to the savings over the next nine years due to the refinancing, PAWSD will also shorten its outstanding debt service payments by two years.
According to Peterson, the savings from the refinancing are realized directly by the district’s ratepayers.
PAWSD is currently working to finalize its 2016 budget. The district began budget talks in October, holding a public hearing on Oct. 15.
The draft budget was published online prior to the hearing. Some changes were made during budget talks in October, and changes will continue to be made until the budget is adopted in December.
The calculations are made based on the anticipated 2015 revenues and expenditures as compared to the projected 2016 revenues and expenditures.