WSACC Completes Revenue Bond Sale for Phase 4 of Rocky River Expansion

The Water and Sewer Authority of Cabarrus County is pleased to announce the successful sale of $84,960,000 in Revenue Bonds on February 7, 2024. These funds will be allocated toward Phase 4 improvements to the Regional Rocky River Wastewater Treatment Plant, aimed at increasing its capacity to 34 million gallons per day (MGD).

The approval process for this project began several months ago with standard financial procedures and regulatory requirements including the completion of a comprehensive audit and the timely submission of the Annual Comprehensive Financial Report to the Local Government Commission (LGC). Collaboration with the LGC began in August, leading to their approval on February 6, 2024.

The Authority’s board also played a vital role in the successful sale. Their approval was required for the Preliminary Findings Resolution, Bond Order, and Guaranteed Maximum Price contract amendments from the Contractor. The finance team and financial advisor played crucial roles in preparing for the rating agency evaluation calls. As a result, the Authority received favorable ratings of AA from Fitch and Aa2 from Moody’s, reflecting the organization’s financial stability.

These ratings led to a strong demand for the Authority’s revenue bonds, resulting in a True Interest Cost of 3.69% and an annual saving of $400,000 compared to estimated interest calculations. During the construction phase, the Water and Sewer Authority will incur interest-only payments at an annual cost of $3.9 million, with principal payments scheduled to commence in fiscal year 2027.

“We are pleased with the positive response to our revenue bond issuance,” said Michael Wilson, Executive Director of the Water and Sewer Authority of Cabarrus County. “These funds will support essential improvements to our wastewater treatment infrastructure, ensuring continued service excellence for our community.”

The Authority extends its appreciation to all stakeholders involved in this process and remains committed to serving the residents of Cabarrus County.