The Nevada Irrigation District would like to take advantage of its good credit rating and current low interest rates to borrow $26 million dollars that would be used for water system improvements. General Manager Ron Nelson says their priority project is to make improvement to the Bear River water delivery system.
“It’s a main artery to get water into the Placer County service area. So in light of the Bear River Canal problems and ongoing maintenance problems, we’d like to look into upgrading and replacing that system.”
Nelson says the District did a refinancing of some of its older debt about 7 years ago, but now the process is much more complex.
“We’re in a new economic climate right now, so there’s a lot more scrutiny on these issues, a lot more looking at the issuers credit rating. Fortunately this district has a great balance sheet and a very promising credit rating.”
The district will decide soon if it will do a competitive sale or a negotiated sale of bonds. They should go to market by the end of the year.