Water/Wastewater Pooled Bond Program

Cities, counties, towns, and districts can finance or refinance water and wastewater projects through the Public Finance Authority (PFA) at AA rates.

PFA will bundle eligible borrower obligations and issue bonds with additional security provided by a bond insurer—Assured Guaranty Municipal Corp. (AGM).


Cities, counties, towns and districts will benefit from:

  • Low cost borrowing available through a public offering
  • Simple financing requirements and reduced ongoing reporting burdens
  • Fast and certain access to co-funding or total funding


The following criteria serve as a guide to potential applicants:

  • Sole provider in service area
  • Facilities serve more than 1,000 connections or more than 5,000 total population
  • Independent rate setting authority
  • Loan amounts ranging from $2,000,000 to $30,000,000
  • Senior pledge of gross or net system revenues

Borrowing Requirements

After PFA reviews and approves an application, the borrower will authorize and execute a loan or other form of agreement with an opinion from the borrower’s counsel. Through the agreement, the borrower must agree to:

  • Maintain rates and charges to generate net revenues at least 120% of annual debt service
  • Pay 1/10 of annual debt service as monthly deposits to PFA’s trustee
  • Provide ongoing disclosure of financial status and material events in a format provided by PFA
  • Provide additional security through a reserve surety with AGM and/or a cash funded reserve

Borrowers must be approved by AGM prior to the issuance of any insurance policy and nothing herein shall constitute an offer to sell or solicitation of any offer to buy any insurance policy.



For inquiries or to be on the mailing list, please contact:

Tom Innis
D.A. Davidson & Co.
505 Montgomery Street, 11th Floor
San Francisco, CA 94111
T +1 415-848-6708
[email protected]