Lake Chelan Reclamation District issues bonds at near historic low rate

MANSON - The Lake Chelan Reclamation District (the “District”) is in the process of issuing Revenue Bonds in the amount of $6.75 million to provide the funding to make capital improvements, including replacing all nine motor control centers at the irrigation pumping plants.  These improvements are per the “10-year Capital Improvement Plan” adopted in 2017 by the Board of Directors.  As part of the bond financing process, the District’s staff presented information to the national rating agency of S&P Global Ratings.

According to Manager Rod Anderson, “the District received a rating grade of A+.  This is a great accomplishment for the District and our ratepayers.  Especially when you consider that this was our first rating presentation.”

Board president Dave Clark said, “this rating of A+ reflects that the District is well-managed and has strong financial policies and practices in place for the benefit of our customers.  The higher the rating, then the lower the interest cost.  We are very pleased and proud to achieve the rating of A+”.

According to Manager Anderson, “the A+ rating is based on the following key factors:  1. Demonstrated track record of strong financial reserves; 2. Strong all-in coverage ratio; 3. Agriculture and tourism-based economy; 4. Financial management policies and practices; and 5. Experienced management in operating the District in an efficient manner.”

The presentation team was comprised of: Manager Rod Anderson, Administrative Assistant Jennifer Collins, Deputy Treasurer Mary Lou Brooks, Consulting Engineer Ryan Peterson of RH2, Consulting CPA Tamara Dezellem of Cordell, Neher & Company, Chelan County Commissioner Doug England, and Bond Underwriter Jim Nelson of D.A. Davidson & Co.  The team presented information and answered questions that dealt with the topics of management, finances, economic growth, and long-term planning. 

The Revenue Bonds were priced on Sept. 9 in Seattle at the offices of D.A. Davidson & Co., serving as Bond Underwriter.  The Bonds (financed over 20-years) achieved a True Interest Cost of 1.93%.  The District is timing the Bond pricing near a historic low in interest rates.

Farmers Electric II, LLC was the low bidder for the Lake Chelan Pumping Plant Electrical System Upgrades Phase One project based on the proposals received by the District on May 6.  The bid was awarded in the amount of $912,300.  This work will start on Nov. 15, and finish by April 1.