MID Continues to Reduce Bond Obligation, Ending Assessment Early for MID Landowners
The Madera Irrigation District (MID or District) continues to make significant advancement for the benefit of its landowners. On September 1, 2022 MID completed a bond prepayment of $2.55 million for the District’s Water Revenue Refunding Bonds, Series 2015 (Series 2015), with the goal of ending the bond payments and associated MID landowner assessments an incredible 14 years early. Due to continued accelerated redemption of the remaining 2015 Bonds by the District, total cashflow savings over the life of the transaction is expected to be $23.7 million. This $23.7 million is personal savings to MID’s landowners.
In 2011, MID landowners voted to approve a Proposition 218 land-based assessment to finance acquisition of the 9(d) contract from the United States Bureau of Reclamation (USBR). When voted on, the 9(d) assessment was planned to extend the life of the bonds, originally 30 years until 2040, however now that assessment timeframe is scheduled to be dramatically reduced to just 16 years, ending in 2026. The District’s actions will have cut the bond obligations and the monies paid by MID landowners via the 9(d) assessments in virtually half, reducing the assessment payment from 30 years to a mere 16 years. The majority of landowners in the District currently pay a 9(d) assessment that ranges from $24.30 to $38.07 per acre per year, depending on the land type.
“The 9(d) assessment is now projected to end in just four (4) short years as opposed to going until 2040, that’s a huge savings for MID landowners. As the MID Board President and a landowner in MID who is paying these assessments, I am extremely pleased the District is able to reduce these payments by nearly half and save our landowners almost $24 million” stated Jim Erickson, MID Board President.