LAKE HAVASU CITY — Lake Havasu City has announced a major financial achievement that reflects years of smart financial planning and strong management. On April 1, the City successfully refinanced $104 million in wastewater utility bonds originally issued in 2015. By taking advantage of lower interest rates, the City secured $22 million in savings over the life of the new bonds, saving approximately $1.2 million per year.
These savings go directly back into the community to fund critical upgrades to the City’s wastewater system, improving long-term reliability and efficiency of our public infrastructure. The refinance of the debt did not extend the life of the debt or add any additional dollars to the debt.
The refinancing effort led to significant credit rating upgrades from two major credit agencies. As part of the transaction, Lake Havasu City earned a first-ever AAA credit rating from Fitch Ratings, which is the highest possible score, and an AA credit rating from Standard & Poor’s Ratings.
“This is a major win for Lake Havasu City,” said City Manager Jess Knudson. “Because of the vision of our Mayor and City Council and the leadership and financial wherewithal of our City team, most meaningfully Administrative Services Director Jill Olsen and her team, not only are we investing back into our wastewater infrastructure residents, but we’ve also confirmed that the City’s financial condition is lauded by independent and respected rating agencies.”
“Earning a AAA rating for the first time in our City’s history is a huge accomplishment. Our residents can be proud of what we achieved here,” said Mayor Cal Sheehy.
