Loading
BONITA SPRINGS — The population of Bonita Springs rose 9.9% from 2007 to 2012, a statistic cited by Standard & Poor's as it upgraded the city utility's credit rating.
The city's growth outpaced the 4.3% increase in population statewide. In addition, the ratings increase for Bonita Springs Utilities was based on the area's economy, its diverse and relatively stable customer base, its debt-service coverage and its liquidity position.
The utility issues revenue bonds through Lee County Industrial Development Authority and it has taken advantage of lower interest rates in recent years.
In 2013, for example, the utility refinanced 2003 utility-system revenue bonds, reducing the interest rate from between 4.6% and 5% to 1.26%. The utility also paid down existing debt with $10 million in unrestricted cash. The two measures will save the nonprofit utility's member-customers $11.5 million in interest that was due during the next 18 years.
The utility also has been trying to sell land in an area now covered by the city's moratorium on development to help it pay down debt. You can read a story about this issue in a recent Business Observer issue here.
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
