Unique Characteristics of Project: Creative structuring helped the City to achieve over $13 million of upfront savings, critical to the City’s short- and long-term rate management strategy. The City was upgraded to a “AA-” by S&P.
Executive Summary: The City of Riverside operates a wastewater treatment plant that has already been partially reconfigured in anticipation of future DPR mandates from the State’s Water Boards. NHA served the City as municipal advisor on a $150 million+ refunding of existing debt in 2018. We assisted the City in successfully getting the utility’s credit rating upgraded from A+ to AA- by Standard & Poor’s and developed a restructuring that helped generate near term savings to help the City meet its debt service coverage thresholds without having to increase rates on residents.
The refunding produced $18.9 million of present value savings, or 10% of the refunded par. Over half of the savings was taken in the first 5 years in order reduce the amount of sewer rate increases that would be needed to meet minimum coverage requirements.