Rainbow MWD approves $10M financing agreement for capital projects

The Rainbow Municipal Water District will be paying for $10 million of capital projects and equipment with a loan.

A 5-0 Rainbow board vote April 23 approved a resolution authorizing an installment purchase agreement with U.S. Bank to finance the infrastructure and equipment. The loan will begin as a line of credit with a variable interest rate before converting to a 4.7% fixed rate for the remainder of the ten-year period.

“We’re hoping to use the debt to help keep our cash reserves healthy and prevent any type of shock rate increase,” said Rainbow general manager Jake Wiley.

On July 10, San...