For the first time in 10 years, Dover, Del., plans to come to market with a competitive sale of water and sewer revenue bonds.
About $4 million of the proceeds from the Aug. 6 sale of the $6.285 million of bonds will be used to finance improvements to the water and sewer system, which serves Dover and surrounding areas of Kent County. Dover is investing in its system because it plans to construct a gravity sewer system that will feed a pump station within Garrison Oak Technical Park. The park contains a solar electric generation facility, and there are plans for another power plant run by natural gas in the park, according to sources involved in the sale.
Most of the remaining proceeds will be used to current refund some water and sewer bond the city issued in 2003. The previously issued bonds will be redeemed about 30 days after the refunding bonds are issued, according to the preliminary official statement.
The bonds will be backed by the net operating revenue of the water and sewer system. The water and sewer credit was recently upgraded to Aa3 from A1 by Moody's Investors Service. Fitch Ratings gives the bonds an AA rating with a positive outlook. The bonds are unrated by Standard & Poor's.
Electronic bids for the bonds, submitted via Bidcomp/Parity, are expected to be received until 10:30 a.m. Tuesday at the offices of the controller/treasurer in Dover, according to the preliminary official statement. Ballard Spahr LLP is serving as bond counsel, and Public Financial Management, Inc. is financial advisor.