East County News Service

The East County AWP project is currently estimated to cost $950 million. The authority has secured two low-interest loans: a $378 million SRF loan at 0.8% from the State Water Resources Control Board and a $388 million WIFIA loan at 1.95% from the Environmental Protection Agency. The authority has also secured over $76 million in grants and incentives from federal, state and local agencies and an estimated $86 million subsidy from the Metropolitan Water District of Southern California tied to water production. The interim notes will provide immediate funding for project construction while loan disbursement applications are processed and additional, permanent funding sources are secured.

The preliminary official statement and investor presentation relating to this offering were posted on MuniOS.com on August 22, 2024. It is estimated that the bonds will be priced on September 4, 2024 and the expected closing date is September 17, 2024. As described in the preliminary official statement, the bonds will be issued in two sub-series, one subject to optional and mandatory turbo redemption and the other subject to optional redemption. The final maturity date of the bonds is September 1, 2026. The bonds have an AA rating from Fitch. Truist Securities is acting as senior manager for the offering and JP Morgan is acting as co-manager.

The East County AWP project is a collaboration between the City of El Cajon, San Diego County, Padre Dam Municipal Water District and Helix Water District. The project will create a new, local and sustainable drinking water supply in East San Diego County using state-of-the-art recycled water purification technology. The project will treat a portion of East San Diego County’s wastewater on-site, reducing runoff to the ocean and the energy required to transport it. In addition, the project will enable indirect potable water reuse by producing reclaimed water at the AWP plant and pumping that reclaimed water to Helix’s Lake Jennings Reservoir for surface water treatment, where it will be mixed with local and imported water. The water will then be piped to Helix’s RM Levy Water Treatment Plant to become potable water for distribution and use by Helix and Padre Dam. This local water supply is expected to meet up to 30% of East San Diego County’s water needs and offset an equal amount of imported water needs. The authority is currently examining the possibility of incorporating an energy recovery component into the project to help reduce greenhouse gas emissions in the region.

* Provisional; subject to change.

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