Oakland County Executive L. Brooks Patterson and Water Resources Commissioner Jim Nash welcomed the news from Moody’s Investors Service that said the formation of the Great Lakes Water Authority is a credit positive for bondholders.
“The new Great Lakes Regional Water Authority could result in meaningful governance and legal separation from Detroit,” Moody’s said. “We expect the new Authority will continue to implement operational efficiencies, including the potential shuttering of excess water treatment capacity.”
The Moody’s report confirms what the municipal bond experts whom the county consulted during the court-ordered mediation said: The GLWA will likely be able to refinance bonds for between 35 and 50 basis points lower than they are now.
“That’s a lot of savings just in refinancing,” Patterson said. “As experts continue to evaluate the water and sewer system and find other ways to save money, we expect it to add up.”
Nash said a report is due by the end of October indicating where some of the efficiencies may be found.
“We’re accomplishing more in a short time here than we did in 37 years of litigation. The GLWA is a great regional accomplishment that will benefit our ratepayers,” Nash said.
Moody’s said the GLWA does not impact the credit ratings of the counties in the authority or the cities and townships it serves.
For more information about the GLWA, go to www.OakGov.com and click on the GLWA link.