The city of Florence expects to competitively issue $99 million of refunding and new-money bonds for its water and sewer system on April 20.
The deal includes $29.9 million of refunding bonds that will redeem sewer bonds issued in 1993 and 2000, as wellas $68.6 million of new-money bonds.
Dealers have the option to bid on the deal as tax-exempt bonds or taxable Build America Bonds. Ratings of A1 and A-plus were assigned by Moody's Investors Service and by Standard & Poor's.
Haynesworth Sinkler Boyd PA is the bond counsel and Independent Financial Advisors is the city's financial adviser.
The water and sewer system's total projected debt service is expected to increase to $10.1 million in fiscal 2014 from $5.9 million in fiscal 2010, according to Moody's. To offset those costs, a 10-year rate increase plan goes into effect on July 1. The system's revenues will cover debt service 1.63 times through fiscal 2014, down from 2.41 in fiscal 2009.