SAN ANTONIO – The San Antonio Water System board of trustees on Tuesday approved a recommendation that would lock in interest rates for the Vista Ridge water project, lowering the cost by more than $450 million.
The long-term fixed financing interest rate could be as low as 4.23 percent, according to a SAWS news release.
Recommended Videos
The maximum estimated capital and raw groundwater unit price of Vista Ridge water, which was projected at $1,959 per acre foot, could now be lowered by more than $300 per acre foot based upon current interest rates, SAWS said.
The board's action could result in lower costs of more than $15 million per year from the maximum level that the San Antonio City Council approved under the original contract.
Board approval allows SAWS staff to lock in the interest rate after providing at least seven business days notice, as stipulated under the current contract. This will establish the benchmark rate and the ultimate fixed price component for the project.
“The actions that the SAWS board took today will secure our water future, improve our quality of life and reduce our project costs by more than $450 million,” Mayor Ivy Taylor said. "SAWS board and staff have been truly conservative in their estimates, requests and actions. That measured, careful approach will result in less money from ratepayers’ pocketbooks.”
The SAWS board will consider approving additional changes to the project within the next few weeks.