Value Delivered:

Access to adequate water supplies is of vital concern to cities throughout California's San Joaquin Valley. KNN Public Finance assisted the City of Lathrop in financing its portion of a water treatment plant in conjunction with three other cities and a subsequent wastewater treatment facility.
   
Strategic Implementation:

To support the city's growth, the City of Lathrop needed to finance its share of a water treatment plant to be constructed and operated by the South San Joaquin Irrigation District. If Lathrop did not meet funding deadlines, the neighboring three cities involved in the contract were prepared to purchase Lathrop's share. Despite complexities including the infeasibility of financing the project through special tax (Mello-Roos) bonds because certain portions of the affected land were not annexed to the City and litigation connected with the treatment plant construction project, KNN guided Lathrop to select a funding structure that met the project timing.
   
Results:

KNN structured a $32 million water supply revenue bond for the City of Lathrop just in time to meet the construction contract award deadline for the new water treatment plant. On the heels of this financing, KNN completed a $14 million issue of assessment bonds for a wastewater treatment facility to serve new residential development in the area. Both financings have resulted in extensive housing and retail development for the City of Lathrop.