Long-Term Debt

As of June 30, 2016, the Water Authority has approximately $1.6 billion of long-term debt outstanding. Long-term debt is in the form of fixed-rate revenue bonds, with final maturities at the time of issuance in the 20 to 40-year range. Most of these bonds (except for the Series 2010B Water Revenue Bonds) are tax-exempt. These bonds are tax-exempt because principal and interest payments to bondholders are not subject to federal income taxes. Because the bonds are tax-exempt, the Water Authority pays lower interest rates than if it issued taxable bonds. The Series 2010B Water Revenue Bonds were issued as taxable bonds pursuant to the “Build America Bonds” stimulus program created under the federal “American Recovery and Reinvestment Act of 2009”. In the case of these bonds, the Federal Government subsidizes a portion of the Water Authority’s interest payments by rebating 35% of the interest payments it makes to bondholders, thereby achieving interest rates, net of the subsidy, that are lower than if the Water Authority had borrowed on a tax-exempt basis.

Long-Term Active Debt Instruments - Official Statements [pdf] Principal Amount Outstanding
Taxable Offerings
Water Revenue Bonds 2010B Build America Bonds (BABS), due May 1, 2049 526,135,000
Tax-Exempt Offerings
Water Revenue Refunding Bonds, Series 2016A (Green Bonds), due May 1, 2033 98,945,000
Water Revenue Refunding Bonds, Series 2016B, due May 1, 2038 197,395,000
Water Revenue Refunding bonds, Series 2015A, due May 1, 2029 184,795,000
Water Revenue Refunding Bonds, Series 2013A, due May 1, 2034 299,105,000
Water Revenue Refunding Bonds, Series 2011A, due May 1, 2027 111,555,000
Water Revenue Refunding Bonds, Series 2011B, due May 1, 2031 94,540,000
Water Revenue Bonds 2010A non-AMT, due May 1, 2027 17,590,000
Water Revenue Bonds 2008A COPs, due May 1, 2038 48,965,000
Water Revenue Bonds 2005A COPs, due May 1, 2022 43,495,000
Water Revenue Bonds 1998A COPs, due May 1, 2028 11,685,000
TOTAL $1,634,205,000
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