Trustees of Central Arkansas Water last week approved an $18.2 million revenue bond issue that is expected to go to market in early January.
Proceeds will provide $14 million to upgrade two treatment plants to meet federal standards going into effect in 2014. The utility will also acquire 448 acres in the Lake Maumelle watershed with $2.6 million of the bond proceeds.
The utility serves some 400,000 residents in several Pulaski County cities, including Little Rock, North Little Rock, Cabot and Jacksonville.
The 20-year bonds will be supported by a 45-cent monthly watershed surcharge on customer bills.
The water system’s existing revenue debt is rated Aa3 by Moody’s Investors Service.