PONTIAC — Moody’s Investors Service says that the formation of the Great Lakes Water Authority is a credit positive move for bondholders — confirming what the municipal bond expert consultant for the county during court-ordered mediation.
“The new Great Lakes Regional Water Authority could result in meaningful governance and legal separation from Detroit,” Moody’s says. “We expect the new Authority will continue to implement operational efficiencies, including the potential shuttering of excess water treatment capacity.”
As a result of its formation, the authority will likely be able to refinance bonds for between 35 and 50 basis points ($35 and $50) lower than they are now.
“That’s a lot of savings just in refinancing,” Oakland County Executive L. Brooks Patterson says. “As experts continue to evaluate the water and sewer system and find other ways to save money, we expect it to add up.”
Water Resources commissioner Jim Nash says are report is due by the end of October indicating where some of the system efficiencies may be found.
“We’re accomplishing more in a short time here than we did in 37 years of litigations,” Nash says. “The GLWA is a great regional accomplishment that will benefit our ratepayers.”
Moody’s says the authority will not impact the credit rating of the counties in the authority or the cities and townships it serves.