Locke proposes to refinance bonds
King County Executive Gary Locke Locke has asked the King County Council to authorize the refinance plan proposed last week for refinancing sewer bonds to save sewer ratepayers $25 million over the length of the bonds.
"We are always looking for new ways to save money for our customers," said Locke. "By being smart about how we manage our money, we can save about $25 million in interest payments. That windfall will help us avoid a rate increase that had been projected for next year and I've directed staff to find ways we can actually reduce the sewer rate for next year."
The bonds support support the Water Pollution Control Division and capital projects for treating wastewater, recycling, and reducing pollution. The 30- and 40-year bonds were sold in the late 1980s and early 90s at interest rates ranging from 6.5 to 7 percent. The new rates the bonds may be refinanced at are between 5 and 6 percent.