The city of San Diego has arranged for a private loan of $150 million to improve its crumbling water infrastructure. KPBS reporter Alison St John has more.
The city of San Diego must fix thousands of miles of old caste iron water pipes and upgrade pumping stations to comply with state law.
But the city is still barred from the public bond market because it is not up to date on its financial audits.
Mayor Jerrry Sanders announced today the city has managed to negotiate a $150 million private loan from JP Morgan. He says the city will benefit from falling interest rates. The short term loan is at just 3.3 percent interest.
Sanders' challenger in the Mayor's race, Steve Francis, says the city is taking too long to get back into the bond market, which is cheaper than private borrowing.
Sanders says he plans to have the 2006 audit completed by early next month. He hopes to get approved by the credit rating agencies soon after.
Alison St John, KPBS News.