Interest rate movements have Truckee Meadows Water Authority watching and waiting to see whether to proceed with plans to competitively sell as much as $150 million in refunding bonds in a sale originally scheduled for May 3.
The plan hinges upon achieving present value savings of at least 3% by advance refunding Series 2001A bonds.
Jeff Tissner, financial manager of the water agency, said the deal could be postponed if rates move unfavorably between now and the scheduled date.
"That doesn't mean we don't keep the gunpowder dry," he said. "If we keep all the documents in place in case, then if rates move more favorably, we can react more promptly."
Tissner said the debt that may be refunded comes from a $452.4 million issue that financed the acquisition of its entire system from an investor-owned utility, Sierra Pacific Resources, which now focuses on providing only electricity and gas to the Reno and Sparks area that Truckee Meadows Water Authority also serves.
The authority was formed in late 2000 to take over the provision of water services to the area.
