(Lawrenceville, Ga., Oct. 8, 2009) - The Gwinnett County Water and Sewerage Authority in conjunction with Gwinnett County Government sold $260 million worth of revenue bonds on Wednesday. The proceeds of this bond sale will be used to refinance variable rate debt that was issued in 2004 and provide $150 million of new bond funding for capital projects.

The County recently confirmed its AAA rating from Moody's Investor Services, Standard & Poor's and Fitch Rating agencies. The triple-AAA provided for $3.1 million in savings in interest costs because this rating equates to the highest quality credit available from the agencies. The true interest costs on the debt issued are 3.02 percent and 3.34 percent for the respective series bonds.

The bond market recently hit a historic interest rate low making the timing of the bond issue ideal for Gwinnett County and its Water and Sewerage Authority. "We are thrilled by these interest rate savings as a result of our AAA ratings," said Commission Chairman Charles Bannister. "The bond ratings have a significant positive impact on the cost of borrowing money for needed improvements."

The water and sewer bonds are backed by the pledge of the county's full faith and credit and taxing power. The money from the bonds will pay to finish construction on two projects already underway including upgrades to the Yellow River wastewater treatment plant off Tom Smith Road and a nine-mile pipeline to carry treated wastewater back to its source in Lake Lanier from the F. Wayne Hill plant near the Mall of Georgia. It will also fund improvements to the Crooked Creek Water Reclamation plant near the Chattahoochee River and Holcomb Bridge Road.

"Although we had rather pay as we go, some of the projects that will be funded from the bond proceeds had to be funded with borrowed money to even out our cash flow," said County Administrator Glenn Stephens. "This is analogous to a homeowner financing the purchase of his or her home. While we are moving to a pay-as-you-go system in the future, we believe that the investment in our new facilities is sound and that our water and sewer system provides excellent service at a good value."