What is 'Plant Acquisition' and how long am I going to be paying for it?|
When Valley Water District purchased the original water systems in 1994, money was borrowed for acquisition costs and funds were obtained via Public Works Trust Fund Loans to finance immediate needs to remedy the water systems. In 1998, the District closed on the sale of a 20-year bond and paid off loans and bank notes associated with the start-up of the District.
Bonds and Public Works Trust Fund Loan payments are made with monies collected from the Base Rate. Every property with a connection to a District water system is billed equally for the cost of the acquisition and ongoing improvements. Customers of water systems that joined the District after the initial start-up are billed similarly for costs related to the acquisition of their water system.
On October 1, 1998, Valley Water District closed on the sa...
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