Oakland County Bond Rating Saves $200K on Farmington Hills Water Tower Costs

Oakland County's AAA bond rating will benefit Farmington Hills water customers more than $200,000 on the cost of a new three million gallon water storage facility that will be built at the (DPW) yard on Halsted. 

In a press release, Oakland County Water Resources Commissioner John P. McCulloch said the tower will provide increased capacity during peak times when usage is at its highest level. The new addition may save Farmington Hills water customers more than $3.5 million per year in Detroit Water & Sewerage Department (DWSD) water rate fees.

“The low 2.7% interest rate on the $6.8 million in bonds issued will also save Farmington Hills water customers more than $200,000 over the next twenty years because of Oakland County’s prized AAA bond rating, which lowers the cost of borrowing,” McCulloch said.

The project will be done in two phases, first building the tower, then work on water mains and installing meters and controls that will enhance the tower’s operational efficiency.

“In addition to the enormous cost savings, this project will build in greater redundancy, provide emergency water supplies for unforeseen events and result in better fire protection,” McCulloch noted. The project is expected to be completed by the spring of 2014.