COLUMBIA, S.C. — On Tuesday, Columbia City Council is expected to consider consolidating Columbia Water bonds from the last 8-years into one bond.
"It is refinancing previous years of bonding. By refinancing, you save on interest rates," said Councilman Howard Duvall. "The $335M is the total indebtedness of, maximum indebtedness of Columbia Water and sewer. We might not use 355M, but we have authorized the staff, or will authorize the staff to go up to that figure if the bond market requires it."
According to Duvall, customers could see lower water rates if city council approves the new bond for Columbia Water.
"We’re consolidating into a new bond to save on interest costs, and it will reduce the cost of the city," Duvall said. "It's for water and sewer and is just for the Columbia system."
Duvall says the consolidation would create savings on past bonds issued and generate funds for new improvement and repair projects. $120M is used for capital improvement projects each year, according to Duvall.
"We have new water lines that's certainly needed in the city," Duvall said. "We have sewer improvements that are continuing in the city, and this is the way we pay for it."
Duvall says residents will not be negatively impacted if the bond is approved. He told News 19 City Council is mindful of keeping rates moderate.
"It'll come out of the sewer and water rates," Duvall said. "I don’t expect it to have any major impact on more rates. It certainly won’t have any impact on taxes."
If the bond is approved by City Council, Duvall says residents could see a decrease in monthly rates as early as next year.