Value Delivered:

KNN Public Finance assisted the Agency in development and execution of the first phase of a plan of finance to increase treated water capacity and distribution throughout the Bakersfield metropolitan area.
   
Strategic Implementation:

The Kern County Water Agency manages local groundwater and surface water supplies; purchases water from the State Water Project; and serves as a wholesaler to five municipal utilities and one private water company in and around Bakersfield through its Improvement District No. 4. The Agency is expanding its water treatment and conveyance capacity to address growing demand and degradation of underground supplies. KNN performed numerous financial analyses to examine the impact of key drivers on the financing process, including alternative pricing methodologies and financing options. We assisted the Agency in the design and negotiation of a restated water contract with its purveyors to support the expanded system.
   
Results:

The sale of $27,700,000 in tax-exempt and taxable revenue COPS will finance expansion of the distribution system, the design of an expansion of the water treatment plant, and the refunding of prior debt. A second bond issue to finance the balance of distribution and the construction of the treatment plant is expected in late 2007 or 2008.