The Nevada Irrigation District is pleased to announce refunding of its 2011 bonds capitalizing on lower interest rates. The transaction will save the District approximately $226,000 annually, or $3.2 million over the life of the new bonds.
Reissuing the $15 million in new bonds takes advantage of falling interest rates and the District’s strong reserve position with Standard and Poor’s awarding the bonds a solid AA+ rating. The action is similar to refinancing a home to take advantage of lower interest rates.
Refunding of the District’s outstanding 2011A Bonds achieves NID’s number one goal of demonstrating proactive management of NID financial resources.
The bonds originally issued in 2011 financed the Banner pipeline project built to ensure reliable water deliveries to the areas of Grass Valley and Nevada City. The Banner Pipeline project replaced open canals approaching available capacity and was prompted by the District continuous assessment of the needs of the communities it serves.