Mission Springs Water District advances $36M Main Campus and water infrastructure package with $28.5M bond issuance

Mission Springs Water District advances $36M Main Campus and water infrastructure package with $28.5M bond issuanceThe California utility has greenlit a major capital package for its new administrative and operational headquarters, supported by a proactive debt paydown strategy that drew praise from its municipal financial advisors.

The Board awarded a $36.2 million construction contract to Robert Clapper Construction Services, Inc. for the MSWD Main Campus.

To fund the campus and two water booster stations, the Board authorized the issuance of up to $28.5 million in Revenue Certificates of Participation (COPs).

The District established and funded new Water and Wastewater Rate Stabilization Funds to act as credit enhancements and ensure compliance with a 1.15x debt service coverage covenant.

Financial advisors highlighted the District's strategic move to pay down over $1 million in existing debt prior to the issuance to secure a strong credit rating.

Mission Springs Water District (MSWD) in Riverside County, California, has approved a sweeping set of contracts and financing resolutions to construct its new Main Campus and upgrade local water infrastructure. During a July 20, 2026 meeting, the Board of Directors authorized a not-to-exceed $28.5 million Revenue Certificates of Participation (COPs) issuance and awarded a construction contract to Robert Clapper Construction Services, Inc. totaling $36.2 million, which includes a 10% contingency. The MSWD Main Campus will consolidate administrative and operational services, featuring a new maintenance facility with vehicle service bays. In addition to the campus building, the approved capital package augments the budget for the relocation of the Horton Wastewater Treatment Plant Percolation Ponds at a cost of $639,100, and the construction of the Park Lane water main for $1.35 million. Two new water booster stations will also be financed under the COPs. Michael Bush of Urban Futures, Inc., the District's municipal advisor, noted that the 30-year COPs will be supported proportionally by water and wastewater revenues. As part of the financing strategy leading up to the issuance, MSWD recently paid off over $1 million in prior debt, including a $15 million line of credit, to clear restrictive covenants and improve its credit profile. Bush told the Board this early paydown was highly unusual for municipal agencies and a strong positive for rating agencies, anticipating a solid 'A' category rating for the new debt. To further enhance the credit profile and ensure compliance with a 1.15x debt service coverage requirement, MSWD officially established Water and Wastewater Rate Stabilization Funds. The initial deposits of $350,000 for water and $150,000 for wastewater represent roughly 30% of the estimated $1.72 million annual debt service on the 2026 COPs. The Board also approved several related construction management and inspection agreements to oversee the campus build. Z&K Consultants was awarded a $641,520 contract for construction management services, and Landmark Consultants secured a $250,000 contract for geotechnical inspections. Additionally, the Board approved a $180,200 contract amendment for Ruhnau Clarke Architects to provide construction administration services.